The video you just watched is just one small example of the power and the capabilities of this new company. By the way, that hospital-at-home product will be in market later this year. Our theme for the day is creating value by transforming the consumer health experience. That's patient value, client value, member value, and critically important for this group, shareholder value. Throughout the day, members of our senior leadership team will discuss how they're managing their businesses and working across the organization to meet the needs of the healthcare consumer, as well as capitalizing on the unique opportunities created through our newly combined company. Importantly, we will show you how these activities are leading to value creation for our shareholders.
Before we get started, I want to remind you that throughout all of today's presentations, we'll be making forward-looking statements within the meaning of the Federal Securities Laws. We'll also be using certain non-GAAP measures. Please take a moment to read this statement, which also appears in your slide books and on our website. You'll also find reconciliations to comparable GAAP measures there as well. To set the stage for the day, I thought it would be helpful to provide the four objectives that we hope you'll take away from today's meeting. The first is that our businesses remain strong, and we have ambitious yet achievable plans for accelerating their growth prospects. Additionally, this growth is enhanced by our combination with Aetna and the transformational initiatives that we'll be bringing to market.
Second, we'll discuss how our differentiated set of assets and capabilities will enable us to dramatically improve the healthcare system to the benefit of consumers, clients, and other healthcare stakeholders. Third, we will provide our high-level expectations for growth in 2020 and 2021, as well as our growth targets as we look to 2022 and beyond. Finally, we will talk about how that growth and the investments that we're making in our business will translate into increased shareholder value. With that, let's start with some of the key trends in healthcare and why transformative change is needed now more than ever. It's been about two and a half years since our last Investor Day. I think we can all agree that an awful lot has changed, both within our company, but also within the broader healthcare ecosystem.
That said, the one constant is the challenge associated with healthcare access, quality, and cost. This trend is all but guaranteed to continue, and it's being driven by an aging U.S. population, the increased prevalence of chronic disease. Price inflation impacts nearly all sub-sectors of healthcare, pharmacy included. Innovation has increased longevity and improved the quality of life, but this further adds to the challenges with that access, quality, cost equation. Needless to say, these challenges have wide-ranging implications, from threats to consumers' financial well-being, to the strain that they place on government and employer budgets. All of the trends driving change in the healthcare landscape are in some way a direct result of these spiraling costs. First, the expansion of consumer-directed benefit designs. It's empowered patients to take a more active role in their health.
As they have become more accountable, they have placed a particular emphasis on increased convenience and transparency. Consumer conceptions of care have also changed. It's not a binary feeling anymore of being either healthy or being sick. Consumers are pursuing preventative care and wellness options that allow them to lead their fullest lives. This includes actively seeking solutions to improve the physical, the social, and emotional well-being. With an aging population and the decision of many seniors to age in the comfort of their home, there's a greater need for providers to extend care and extend support. This elevates the importance of care in the home, as well as the role of the caregiver. We're also seeing the evolution of personalized care with a greater recognition that one size does not necessarily fit all patients.
Advances in technology and the proliferation of personalized data through the increased use of genomics and wearable technology have made analytics a very important complement to provider healthcare decision-making. Lastly, we're seeing the continued evolution of payment models, from fee-for-service to more value-based arrangements, where the focus is on driving quality outcomes while lowering the total cost of care. Now, with that important backdrop, let's take a look at how we are positioning CVS Health to be the driving force for change in our healthcare system. Our mission is to be the most consumer-centric health company, and we have the national scale and the local presence with our differentiated assets and capabilities to deliver on that goal. First, the breadth and depth of the consumer data we have access to through our numerous healthcare assets is unmatched.
This data, combined with our investments in advancing our analytics capabilities, this provides a powerful engine to inform healthcare decision-making. We also benefit from having pharmacy and medical benefits along with retail assets integrated into a single enterprise. These owner economics allow us to invest in unique programs that standalone entities simply can't match. We are truly operating with an enterprise mindset, and we're agnostic to where value is being created across our enterprise. Additionally, CVS Health remains a recognized and trusted brand that resonates with consumers. We have one of the largest workforces of high-quality clinicians and healthcare professionals to help support consumers on their individual health journeys. Finally, and most importantly, we have the consumer-facing assets that are needed to bring these newly created programs and services to life.
Now, these assets are the key differentiators that enable us to transform and dramatically improve the consumer health experience. They give us tremendous reach. We engage with about one in three Americans every year. This reach allows us to meet patients where they are, whether it's in the community, in their home, or today, even in the palm of their hand through digital devices. We believe we have an unparalleled community presence. We have nearly 70% of the U.S. population living within three miles of a CVS Pharmacy. Being local enables us to become part of the consumer's normal, everyday routines. We can leverage the frequency of these consumer interactions to build our programs and our services into their existing routines, their everyday lives. We will also build upon our existing programs and established relationships to extend care into the consumer's home.
We've made great strides in this regard through our expanded prescription delivery program, our Coram infusion services, and through Aetna nurses or other care team members. In total, we provide about 700,000 visits to patients in their homes and other community settings annually. We're also seeing increasing the support that people receive through our digital properties. Just as one example, today, more than 72 million of our CVS patients are enrolled in our text messaging program, and this allows them to receive real-time alerts about their prescriptions and other services. Our ability to interact with consumers through a broad range of channels, it does provide us unique competitive advantages versus our managed care peers. Today, simply being able to manage benefits across medical and pharmacy, that's become the price of admission for industry peers.
Winning in an increasingly competitive marketplace requires both the ability to use proprietary data and the ability to reach patients and actively engage them when they are thinking about their health. That's where we stand apart. That's the power of what we're creating. Numerous studies have shown that face-to-face engagement with a trusted healthcare professional is more effective than other forms of communication. Our numerous touch points with healthcare consumers, it enables us to provide healthier behaviors. That's going to lead to better outcomes and ultimately lower medical costs, benefiting consumers, clients, and shareholders. With that, let me move and discuss how we'll be using these differentiating factors to accelerate enterprise growth on both the top and bottom lines. Our enterprise priorities for accelerating growth, they revolve around placing the consumer at the center of our strategy.
With that comes an objective of making healthcare local, making it simpler to access and navigate, and helping the consumers that we serve achieve their best health. With that nucleus, we plan to accelerate growth by executing on four enterprise priorities. We will grow and differentiate our businesses. We will use the unmatched breadth of our capabilities to bring new products and services to market. We will create a consumer-centric technology infrastructure to support our transformational initiatives, and we will become a more efficient operator by modernizing our enterprise functions. Let me dive a bit deeper into each of these priorities, and I'll start with our core businesses. We're aggressively addressing the near-term headwinds affecting some of our businesses through an action plan that's designed to enhance profitability, and accelerate our return to growth. A few of the highlights include driving engagement through personalization.
Our retail business is successfully executing on this strategy, through our clinical programs in pharmacy and through our ExtraCare program in the front store, and we intend to build on these efforts. We're also focused on winning in the fastest-growing market segments, specifically government-sponsored programs and specialty pharmacy. We believe our significant presence and our differentiated capabilities will enable us to capture an outsized share of the overall market growth. To combat reimbursement pressures, we're implementing new pricing models that compensate us commensurate to the value we provide to the broader supply chain, recognizing that effective pharmacy care is an important lever in managing overall healthcare costs. We're also working to improve productivity and efficiency throughout our operations. To that end, we recently launched a new cost reduction effort. I'll touch on that in just a moment.
Lastly, we're introducing new products and services that can only be brought to market through our integrated model. We're going to address all of these topics in much more detail throughout the morning, but I do want to take a minute to highlight the early success that we've had with our HealthHUB stores. As a reminder, these stores bring to market a new retail engagement model that offers healthcare services in a more convenient, more accessible, and more customer-focused manner. We opened our first three stores in the Houston area earlier this year. We are very encouraged by the patient engagement and satisfaction scores, as well as the utilization of our healthcare services. As a marker of our confidence, we plan to roll out these stores more broadly across our footprint.
By year-end, we expect to have this concept in three additional markets, and we see that growing across the country to approximately 1,500 total locations by the end of 2021. Kevin will talk more about the early learnings and expansion plans in greater detail. The HealthHUBs are, of course, just one opportunity in our portfolio of transformational initiatives. Alan will cover the series of transformational products and services that are in development that you see identified on this slide. I want to focus on the value that we expect to create through these transformational efforts, which will manifest itself in our results in the following ways. First, through medical cost savings from many of the initiatives that you'll hear about this morning. Second, we plan to take a portion of those savings, reinvest them back into the business to grow membership.
Third is through the increased utilization of CVS assets as more customers adopt our new products and services. Fourth, by improving the customer experience, we'll increase customer satisfaction, and this will help to improve retention, both for the customers who use our capabilities and also for the clients that we serve across both the pharmacy and medical benefit. Lastly, we will make these products and services available to a wide array of partners through an open platform model and drive adoption through our existing relationships with companies across the healthcare landscape. We expect these value creation levers to contribute approximately $850 million of value in 2022, with a line of sight to more than $2.5 billion longer term, and that's based on the product and service offerings in development and on the drawing board today.
Building out our technology infrastructure is essential to our goals by simplifying the consumer experience, improving health outcomes, and driving efficiencies. Uniting CVS Health with Aetna provides us direct access to an unparalleled breadth of data. We're creating a new data ecosystem to protect this data as well as leverage it across our organization to provide a holistic view of the patient, garner insights into the next best action to improve their health, and determine how to best communicate with the patient. Our aim here is very simple, to turn data into insights and then insights into action. Our last enterprise priority is to become a more efficient operator and take costs out of the business, and we see two opportunities to accomplish this goal.
The first is through achieving our near-term synergy goals from the Aetna acquisition. The majority of these synergies will be derived from the reduction of corporate expenses, the integration of our operations, and some medical cost savings. As you'll recall, when we announced the transaction, we were targeting $750 million in synergies in the second full year. We now expect 2020 synergies of $800 million, growing to a run rate of $900 million in 2021 and beyond. The second opportunity is through our newly announced enterprise modernization initiative. Both CVS and Aetna have a strong track record of executing on cost reduction efforts. This program builds upon that legacy work with targeted run rate savings between $1.5 billion-$2 billion in 2022.
These savings will allow us to offer more competitive products and services in the markets we compete in and provide the capacity to invest in our strategic and transformational initiatives. I've given you a number of drivers that we expect to contribute to our performance in the coming year, we thought it would be helpful to provide you with a view of how these drivers will translate into enterprise growth. Next year, aided by contributions from delivering on our synergy goals along with stabilizing core businesses, we expect adjusted EPS growth to be in the low single digits. In 2021, we expect the investments that we're making in transformation and enterprise modernization to begin to impact our results. We also expect our capital allocation strategy to continue to be focused on debt reduction and maintaining a healthy balance sheet.
Given that, we expect adjusted EPS growth to be in the mid-single digits. As we look beyond 2021, we expect transformation and enterprise modernization to be more meaningful contributors to our performance. Additionally, we expect our capital allocation strategy to begin to shift from debt reduction to a more normalized strategy that includes the expectation for share repurchases, dividend growth, and potential M&A. We expect that to translate into annual adjusted EPS growth in the low double digits. Please keep in mind that we are still in the early innings of our transformational journey. We're now transitioning from the planning stage to the execution stage, and this will be a multi-year journey with benefits building over time as we continue to build and refine new programs to better serve the needs of our stakeholders.
We remain confident that we have the right plan in place. We've got the right assets and capabilities needed to deliver, and we certainly have the right people to fulfill the potential of this incredibly powerful new company. Before I wrap up, I want to reinforce that all of the efforts are totally aligned with our commitment to deliver superior shareholder returns. We will drive these returns by maintaining a consistent vision and strategy, along with a relentless focus on execution across our enterprise. This includes delivering on our financial and operational goals at the segment level, also delivering on our targets for integration, transformation, and modernization. We will hold ourselves accountable for that performance. As you know, we have significant cash generation capabilities. We'll be thoughtful and disciplined in how we allocate that capital across our businesses.
This includes a continual evaluation of all of the assets in our portfolio to make sure that they are supporting the overall growth strategy of our company. By executing across this framework, we firmly believe that we will deliver superior returns for our shareholders. With that, let me outline our agenda for the day. First, Eva Boratto, our CFO, will take you through our plans to significantly enhance shareholder value, including our near and long-term growth target expectations and capital allocation plans. Then our Chief Transformation Officer, Alan Lotvin, will talk about some of the programs that we are putting in place to accelerate enterprise growth. Our Chief Operating Officer, Jon Roberts, will walk through the steps that we're taking to build the foundation for those transformational efforts, including the details of our enterprise modernization initiative.
Following a brief break, Karen Lynch, President of our Aetna business, will discuss how we're positioning our Health Care Benefits segment to take advantage of the opportunities across all lines of business, as well as the unique capabilities that are being created as a result of the CVS-Aetna combination. After Karen, Derica Rice, President of CVS Caremark, will provide an update on how we're evolving our Pharmacy Services segment in response to the changing dynamics in the PBM market. Kevin Hourican, President of CVS Pharmacy, will talk about our retail growth strategy, including transforming CVS Health into a consumer health destination. Then we'll wrap up with a Q&A session with all of our speakers. With that, let me turn it over to Eva.
Thank you, Larry. Good morning, everyone. Following Larry's overview of how we plan to transform the consumer health experience and our priorities to drive long-term shareholder value, I'd like to delve a bit deeper into what this means for our financial performance in the near term and how we're positioning ourselves for long-term sustainable growth. We're focused on strengthening our business by working across the enterprise to create incremental operating income and position CVS Health for sustainable growth. We have robust opportunities, including synergies, transformation, and modernization. These initiatives will augment our substantial earnings and free cash and allow us to more effectively optimize our capital allocations. We expect this to fuel our earnings now and in years to come. Optimizing our capital allocations and returning value to shareholders continues to be and will remain an important component of our value creation strategy.
Today, I'll cover a brief recap of our 2019 outlook, then walk through the value we're creating through synergies, modernization, and transformation. After that, I'll cover our financial outlook and capital allocation strategy. We're reaffirming our 2019 expectations for all elements of the guidance we provided on our Q1 earnings call. We exceeded our expectations in the first quarter. In this transition year, we're pleased with our performance to date and remain focused on executing against our business plans. We're making significant progress on our integration efforts and our plans to drive enterprise value. These efforts, as I've said, fall into three key categories: synergies, modernization, and transformation. Let me start with a review of our synergies. When we closed the Aetna transaction in November, we set a goal of delivering $750 million in synergies in 2022. Since then, the team has identified additional value.
We continue to expect to deliver $300 million-$350 million of synergies this year, and we track to the higher end of that range. We now expect to realize synergies of $800 million in 2020 with a run rate of $900 million thereafter. Cost to achieve these synergies will continue to be excluded from our adjusted earnings per share. The largest source of synergies will come from business integration as we adopt standardized programs. For example, moving Aetna's formularies to Caremark enable us to use our scale and our negotiating skills to deliver incremental savings for the enterprise. Combining the pharmacy operations also enables us to streamline front-end services for our mail and specialty operations in the PBM. We will also continue to increase enterprise dispensing using best practices from each organization. We will enhance the strength of our PDP and competitive position by lowering cost and improving care.
Synergies will also come from streamlining our corporate functions. These will come from improving vendor contracting and consolidating many of our corporate areas. Finally, we'll realize meaningful synergies for medical cost savings. These will be modest in 2019, with greater contribution expected in 2020 through the use of our combined assets. For example, we're already engaging with Aetna's members through the use of our retail consumer touchpoints and applying data from across the enterprise to drive desired outcomes, reducing overall treatment costs, and providing direction to lower-cost sites of care. In May, we announced a new enterprise modernization initiative. This is in addition to the synergies that I just outlined. It builds upon the success of the streamlining efforts CVS Health initiated in 2017 that continue to produce steadily increasing savings.
More than a cost-reduction effort, this initiative seeks to improve productivity across all of the enterprise and is expected to remove $1.5 billion-$2 billion of net cost in 2022. Again, these savings are separate and in addition to the $900 million of integration synergies I discussed previously. Productivity benefits will be derived by bringing together knowledge, technology, and capabilities across our businesses to improve the way we work without having to build new platforms or undertake significant re-engineering. Said differently, we already have the tools we need within the combined organization. Jon will walk through our enterprise modernization initiative shortly in more detail. As for cost, we expect this initiative to require an investment of approximately $200 million-$300 million annually through 2022, and those costs are netted in the savings I just articulated.
In addition to synergies and modernization, we see significant value coming from what we're calling transformation, which will accelerate, augment, and amplify our growth. We will do this by delivering products, services, and capabilities that we couldn't have done in our legacy businesses. The clearest way to envision this transformation is to contrast how health plans have interacted with consumers in the past with the consumer-centric model that we are creating, which will enable us to create value in a number of ways. The first is a development of infrastructure that will increase consumer engagement and provide a truly connected healthcare experience. As we've said many times, greater engagement in the right programs improves health outcomes. Improved health outcomes lowers...