Healthcare Giants Eye Acquisitions in Bid for Growth

Healthcare conglomerates UnitedHealth Group and CVS Health are eyeing potential acquisitions as they look to rebound from tough years. Speaking at the Wells Fargo Annual Healthcare Conference, executives from both companies indicated a renewed focus on deal-making.

UnitedHealth Group's Chief Financial Officer Wayne DeVeydt emphasized the company's intention to deploy stock buybacks more aggressively over the next five years, with an eye towards acquisitions that support its Optum Insight division. The data analytics and consulting arm of Optum subsidiary is seen as a key growth driver for the company.

CVS Health's Chief Financial Officer Brian Newman also hinted at the possibility of deals in the pipeline, stating that the company will target 'bolt-on acquisitions' and resume share buybacks next year. This comes after CVS Health sold its accountable care division to Wellvana last year and agreed to sell long-term care pharmacy services provider Omnicare as part of a settlement with the Justice Department.

UnitedHealth Group has recently divested some assets, including selling Optum clinics in Florida to private equity firm TPG. However, the company remains committed to growing its business through strategic acquisitions and investments.