CVS 2002 Annual Report Download - page 12

Making it easy to
manage Rxbenefits.
10 CVS Corporation
Managing Benefits, Specialty Pharmacy
As planned, we integrated ProCare, our specialty
pharmacy business, into PharmaCare Management
Services in 2002, positioning PharmaCare as one of
the most complete pharmacy benefit
management (PBM) companies in the
market.
PharmaCare is among the top
10 full-service PBMs in the
country, providing a wide range
of pharmacy benefit
management services for more
than 14 million lives nationwide.
Clients include managed care
organizations, self-insured
employers, and third-party
administrators. PharmaCare
successfully consolidated many of
ProCare’s operations and
overhead costs,
resulting in record
profitability and
substantial long-
term competitive
advantages.
Effective in 2003,
ProCare will operate
as PharmaCare
Specialty Services.
PharmaCare integrated all specialty pharmacy mail
services into one state-of-the-art-mail facility that
serves as the central hub for both specialty mail
services and the retail stores. We assist with
reimbursement services and offer the convenience of
home delivery, depending on customer preference
and geographic coverage.
The market for specialty pharmacy drugs,
presently $22 billion annually, is expected to double
over the next five years. Although these drug
therapies represent breakthroughs in treatments, they
also pose financial and clinical challenges for our
clients. PharmaCare’s approach to providing specialty
pharmacy services is to deliver high-quality clinical
care while managing healthcare costs.
The consolidation of ProCare and PharmaCare
has created real synergies that provide long-term
competitive advantages. PharmaCare now is able to
offer its clients improved products that meet their
needs for cost-effectiveness and enhanced
member satisfaction. With the
consolidation complete, the business is
showing overall operating
improvement and profitability
across the business, as well as
improved service for all customer segments.
Through dedicated sales and marketing efforts,
PharmaCare gained enhanced name recognition
resulting in a significant increase in PBM market
acceptance within the employer market segment. As a
direct result of this effort, PharmaCare won several
multi-year contracts to provide integrated pharmacy
benefit management services. In addition, PharmaCare
has added several new clients to its specialty
pharmacy roster.
PharmaCare continues to set innovative
benchmarks in pharmacy benefit management while
meeting the cost-containment and service objectives
of its customers. Achieving unsurpassed customer
satisfaction and maintaining high standards of care
remain PharmaCare’s #1 priority.
PharmaCare
is one of
the most
comprehensive
PBMs in
America.
PharmaCare provides patient-focused
programs that effectively balance
savings with patient satisfaction.