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Mass General Brigham, CVS deal could raise healthcare spending $40M annually: Report

A proposed deal between CVS and Somerville, Mass.-based Mass General Brigham to expand primary care access could result in higher healthcare costs for some patients, according to a report from the Massachusetts Health Policy Commission. 

In summer 2025, Mass General Brigham and CVS submitted plans to transform 37 MinuteClinic locations into MinuteClinic Primary Care sites and place those facilities in Mass General Brigham’s network of providers and participate in the system’s payer contracts. The deal would enable referrals to the system’s hospitals, specialists, diagnostic services and laboratories for follow-up care. 

In a 66-page report published April 16, the Massachusetts Health Policy Commission Board analyzed how the potential collaboration can affect the state’s healthcare market. According to the commission’s preliminary findings, the proposed collaboration could raise annual healthcare spending by $40 million after the first three years of implementation. 

In response to the report, CVS and Mass General Brigham said their proposed affiliation will expand access and decrease total costs of care over time. 

The commission calculated the $40 million increase in annual spending based on the CVS primary care clinics serving 35% of their capacity. A majority of that estimate relies on the claim that the new primary care patients — who otherwise would not receive care — will be referred to “higher-priced MGB specialists and hospitals,” the report said. 

“This includes increased spending as new primary care patients join [MinuteClinic Primary Care] and adopt care patterns similar to existing patients of other MGB affiliates ($27.7 million) and higher prices for both MCPC’s continuing convenience care services ($6.6 million) and the convenience care services that would need to move to other providers ($5.9 million),” according to an April 16 statement from the commission. 

“We appreciate the continued collaboration of the parties during this review and public accountability process, and look forward to their forthcoming responses to the questions raised by commissioners as we issue this preliminary report,” Massachusetts Health Policy Commission Board Chair Deborah Devaux said. 

A CVS spokesperson said the commission’s report “appears to overstate the potential impact on healthcare spending.” 

“A strong and consistent body of evidence demonstrates that expanding access to primary care reduces total healthcare costs for patients over time, which should be considered fully when evaluating the potential collaboration,” CVS told Becker’s in an April 17 statement. 

The company said it plans “to share more detailed feedback” on the report within the MHPC’s 30-day comment period. 

Mass General Brigham shared a similar statement. 

“The new Health Policy Commission report frames the MinuteClinic affiliation as a $40M+ cost increase,” the health system said. “However, we have questions about the methodology used, with the majority of this analysis based on an assumption of increased spending in the first two years for patients newly accessing primary care. This does not account for the longer-term reduction in total cost of care that typically follows as preventive and coordinated care take effect. The [Health Policy Commission] has offered us an opportunity to have further conversation, which we look forward to.”

The post Mass General Brigham, CVS deal could raise healthcare spending $40M annually: Report appeared first on Becker's Hospital Review | Healthcare News & Analysis.

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