FILE - A CVS Pharmacy retailer drug store with a MinuteClinic and Health Hub is in the Harlem neighborhood of New York City on Friday, March 3, 2023. CVS Health reports their earnings on Wednesday, May 3, 2023. (AP Photo/Ted Shaffrey, File)

By TOM MURPHY AP Health Writer

CVS Health turned in a better-than-expected first quarter as revenue grew from all parts of its business. But the health care giant chopped 2023 earnings projections after closing a pair of multi-billion dollar deals that push it deeper into providing care.

The company also absorbed another hit from a struggling long-term care business it wants to unload.

CVS Health said Tuesday that it completed a roughly $10.6 billion acquisition of primary care provider Oak Health that it had just announced in February. It also closed in March an approximately $8 billion deal to buy home health care provider Signify Health.

Both deals reflect spending priorities for the company. CVS Health runs drugstores, provides insurance and manages prescription drug benefits.

It also has been moving more into providing care as part of a broad push to cut costs and improve patient health. That’s something bill payers like insurers and employers want to see.

After closing the deals, CVS Health said Wednesday that it now expects adjusted earnings of $8.50 to $8.70 per share for the year. That’s down 20 cents on both ends of the range from a forecast it debuted in November and reaffirmed in February.

It’s also short of the $8.76 Wall Street had been projecting, according to a poll of analysts by FactSet.

CVS Health runs a drugstore chain with nearly 10,000 locations. It manages prescription drug plans for big clients like insurers and employers, and it provides coverage for more than 25 million people through its Aetna arm.

The company’s total revenue jumped 11% to $85.3 billion in the first quarter. Adjusted earnings totaled $2.20 per share.

Analysts predicted earnings of $2.09 per share on $80.79 billion in revenue.

CVS Health Corp. also said Wednesday that operating income fell nearly 3% to $3.45 billion in the quarter due to another write-down from its Omnicare long-term care business. CVS Health CEO Karen Lynch said last fall that the company was exploring strategic alternatives for that business.

Shares of CVS Health, Woonsocket, Rhode Island, slipped nearly 2% before the opening bell Wednesday.

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