CVS focused on integrating mergers

By Brad Dorfman

CHICAGO (Reuters) - CVS Caremark Corp (CVS.N: Quote, Profile, Research, Stock Buzz) is focused on integrating recent acquisitions instead of looking for new purchases, but will expand its in-store health clinics, Chairman and Chief Executive Thomas Ryan said on Wednesday.

"It's most important that we stay focused on the integration, the execution and getting our balance sheet in order, and then we will have the opportunity to look at opportunistic acquisitions," Ryan said at the Reuters Health Summit in New York.

CVS acquired pharmacy benefits manager Caremark in March and is still integrating the Osco and Sav-On drugstores it bought last year from Albertsons Inc.

Ryan said he did not think CVS needed to be in every state, but said the company could move into the Pacific Northwest region at some point.

Meanwhile, CVS, one of the country's largest drugstore chains, is expanding health services offered in its stores.

CVS plans to open about 300 in-store health clinics a year as it targets a total of about 2,500, he said. The company will have about 400 of the MinuteClinics in its stores by the end of the year, he said.

The MinuteClinics -- clinics run by nurse practitioners -- are part of a growing push by drugstores and retailers like Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research, Stock Buzz) to offer more services and attract more customers.

The clinics, which offer tests for strep throat and treatment for minor illnesses, have grown as consumers look for a venue more convenient than a doctor's office and as uninsured patients seek less expensive alternatives to emergency rooms for basic health care.  Continued...