CVS 2000 Annual Report Download - page 15

ProCare’s Unique Business Model
A major factor differentiating the needs of spe-
cialty and traditional pharmacy customers is the cost
of treatment. Specialty pharmacy customers often
require complex, highly expensive drug therapies
over an extended period of time. While it is impracti-
cal to stock such medications in more than 4,000
CVS/pharmacy stores, we are able to maintain inven-
tories in our ProCare apothecaries, where we have
steady demand for
these products.
ProCare’s emphasis
on healthcare is
further reinforced in
the front of the store,
which is stocked
with wellness-oriented products such as alternative
medications, homeopathic remedies and vitamins.
Due to the high cost of treatment, there are
complex billing procedures associated with specialty
pharmacy. ProCare customers often have primary,
secondary and even tertiary insurance.
We have created a sophisticated platform to
manage these billing issues, including our customers’
insurance claims and our own receivables.This is not
only a valuable convenience for our customers but
also sets us apart from many smaller competitors that
have been unable to develop an effective system for
managing receivables and insurance-related billing
requirements.
Our growth strategy calls for the continued expan-
sion of ProCare, with a goal of operating
100-125 strategically located ProCare
apothecaries within a few years. These
retail stores are an important mechanism
for establishing ties with local commu-
nities.We have opened ProCare apothe-
caries in markets not currently served
by CVS/pharmacy, such as Texas, Oregon and California,
where there is significant demand for specialty phar-
macy services. In addition, we will continue to evaluate
opportunities to make acquisitions, like Stadtlander,
that accelerate our market leadership position.
CVS.com
America’s 1st Major Integrated
Pharmacy and Front-End Offering
CVS.com was the industry’s first major “clicks and
mortar” pharmacy to offer pharmacy and front-end
products, a perfect example of how we have been
putting innovative technology
to work to make life more
convenient for our customers.
CVS.com provides 24-hour
access to registered pharma-
cists through the Internet
or via a toll-free telephone
number. Visitors to CVS.com
can research health-related
information or shop for
thousands of over-the-
counter items at highly
competitive prices.
…healthcare
service retailer…
“CVS is on the corner,
on the phone and
on the web, offering
healthcare products and
services to meet all of
our customers’ needs.” The CVS.com Pharmacy Counter offers
prescription refills and advice
for Internet customers.
13
2000 Annual Report
INDIVIDUAL NEEDS. INDIVIDUAL CARE.