CVS Health (Nasdaq: CVS) has begun 2023 with a clear strategic push into behavioral health and primary care, signaling its intention to expand its footprint in holistic, integrated health care. At the recent JP Morgan Health Care Conference, CVS announced CVS behavioral health investments in Array Behavioral Health, a digital behavioral health provider, and Carbon Health, a hybrid primary care provider. Meanwhile, speculation has arisen that CVS may pursue the acquisition of Oak Street Health, a network of value-based primary care facilities serving adults on Medicare.
While Carbon and Oak Street Health are not exclusively behavioral health companies, both offer mental health services to their patients, reinforcing CVS’ strategy of integrating behavioral health into a broader care model. Andrew Holm, an advisor at Physician Growth Partners, told Behavioral Health Business, “Behavioral care is perhaps the most suited to digital and telehealth deployment of all medical specialties, and there is a huge need nationally. CVS hasn’t historically had a robust behavioral solution, so investment in the space is a logical expansion of their capabilities and service offering.”
Nontraditional Players See Opportunity in Behavioral Health
CVS is not alone in seeking growth in behavioral health. Other major nontraditional health care players are actively expanding their mental health services. For instance, UnitedHealth Group (NYSE: UNH) acquired outpatient mental health provider Refresh in 2022, enhancing its capacity to treat a range of behavioral health conditions. Likewise, Amazon (Nasdaq: AMZN) announced plans to acquire hybrid primary care provider One Medical, which includes behavioral health services. These moves reflect a broader trend: large payers, retail health giants, and health systems are all recognizing the urgent need for accessible, integrated behavioral care.
Holm points out that behavioral health often drives costs across health systems, as untreated mental health symptoms can lead to more serious medical conditions. “Behavioral symptoms are often a precursor to chronic issues, for example, anxiety contributing to high blood pressure or other long-term complications,” he explained. “Having a behavioral solution under your umbrella is a fantastic way to proactively mitigate costs through preventative care. There is a national push for integration of primary and behavioral care for this reason, and this investment trend will absolutely continue in the future.”
CVS’ Vision: Integrated, Whole-Person Health
CVS Health has repeatedly emphasized its commitment to whole-person care, which integrates behavioral, physical, and preventive health services. Cara McNulty, president of behavioral health and mental wellbeing at CVS Health, told Behavioral Health Business in October, “We will continue to drive that premise and meet people where they’re at on their mental health journey. That means we’re not waiting for people to be in crisis. We are thinking, talking and acting on people’s mental health and physical health, consecutively showing up in the same way.”
By taking this approach, CVS is positioning itself as more than just a retail pharmacy or insurance provider—it is aiming to become a central hub for patient-centered care, offering seamless access to both behavioral and physical health services.
CVS’ Behavioral Health-Focused Investments
CVS’ investment in Array Behavioral Health stands out as a clear step into digital behavioral health. CVS’ venture arm led Array’s $25 million funding round earlier this year. Array’s business model focuses on providing virtual behavioral health care services to hospitals, clinics, and other providers, enabling broader access to mental health care for patients across the country. CVS has also partnered with Array in the past to offer care for Aetna members, highlighting the strategic alignment of its CVS behavioral health investments with its existing subsidiaries.
Alongside Array, CVS is also investing in primary care providers with behavioral health integration. Carbon Health, a San Francisco-based hybrid provider, received a $100 million investment from CVS Health Ventures. Carbon offers virtual mental health services in California and integrated behavioral health programs in Massachusetts. Its expansion plans indicate a growing commitment to nationwide mental health care delivery. Holm noted, “Funds like CVS’ allow companies to be on the leading edge of health care innovation while enhancing offerings and generating returns. It is typical for a fund such as CVS’ to lead an investment round and have a meaningful stake in, and a board seat at, the company.”
The Strategic Value of Oak Street Health
The rumored acquisition of Oak Street Health could further strengthen CVS’ position in primary and behavioral care. Oak Street Health operates value-based primary care clinics for older adults, many of whom already have established relationships with their primary care providers. Integrating behavioral health services into these clinics could improve access and continuity of care for seniors. Katherine Suberlak, vice president of clinical services at Oak Street Health, explained at the Aging Media Network’s Continuum conference, “It’s the right thing for the patient, clinically.” For older adults, having behavioral and primary care under one roof simplifies access, encourages proactive management of mental health, and helps prevent escalation of chronic conditions.
Digital Engagement at the Core
CVS’ CVS behavioral health investments also highlight the growing importance of digital health. Array, Carbon, and Oak Street all emphasize virtual care, aligning with CVS’ strategy to enhance digitally-led engagement. CEO Karen Lynch emphasized at JP Morgan, “For many consumers, digital is the very first engagement point, and we’ve seen significant growth in our digital interactions with our customers.” CVS’ omnichannel approach, combining in-person and digital services, aims to reduce wait times, improve patient experiences, and deliver more connected, comprehensive care.
Digital tools also allow CVS to extend its reach to underserved populations and provide care in a more flexible, scalable way. Virtual mental health services, in particular, address one of the most significant barriers to care: accessibility. For many patients, being able to access behavioral health services from home can be the difference between seeking care and going untreated.
Implications for the Healthcare Market
CVS’ CVS behavioral health investments illustrate how large, nontraditional health players are reshaping the behavioral health landscape. By integrating behavioral health into primary care and leveraging digital tools, CVS is positioning itself to meet rising demand for mental health services while addressing the cost challenges associated with untreated behavioral conditions.
Furthermore, these moves may encourage other insurers and retail health organizations to accelerate their investments in behavioral health and digital care, creating a competitive environment that benefits patients. Ultimately, CVS’ strategy emphasizes proactive, preventative care that prioritizes the whole person—not just isolated physical or behavioral conditions.
Conclusion
CVS Health’s 2023 CVS behavioral health investments in Array Behavioral Health, Carbon Health, and the potential acquisition of Oak Street Health highlight a clear focus on integrated, holistic care. By combining digital behavioral health services with primary care and value-based models, CVS is building a comprehensive approach that addresses both physical and mental health needs. These moves signal not only the company’s growth ambitions but also a broader trend in healthcare: integrating behavioral health, leveraging digital tools, and prioritizing preventative care to improve outcomes and lower costs.
As the behavioral health landscape evolves, CVS Health’s CVS behavioral health investments position the company as a major player in shaping the future of integrated care, ensuring that patients have access to the services they need—wherever they are on their health journey.
