CVS 2008 Annual Report Download - page 14
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Please find page 14 of the 2008 CVS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.A Conversation with Larry Merlo and Howard McLure
Q. Howard, has Caremark’s focus
changed much since the merger?
A. HOWARD MCLURE: Not really. We
were a state-of-the-art PBM before,
and we remain one today. We’re
still working hard to lower costs
for our clients by driving mail order
pharmacy and generic utilization,
and helping them manage their
specialty pharmacy costs. At the
same time, we continue to make
signifi cant inroads with our Proactive
Pharmacy Care offerings.
Q. You both talk a lot these days about
Proactive Pharmacy Care. What exactly
is this?
A. HM: We defi ne it as an earlier,
easier, more effective approach
to engaging plan participants in
behaviors that can help lower costs,
improve health, and save lives.
Essentially, it’s the umbrella title
for all the PBM and retail services,
including those that have been made
possible as a result of our merger.
A. LARRY MERLO: Exactly. Maintenance
Choice, Bridge Supply, and Specialty
Pickup at CVS/pharmacy are all
examples of Proactive Pharmacy
Care. Our in-store pharmacists have
really embraced these offerings,
which give them a larger role to
play in counseling patients. After all,
that’s what they went to school for,
and we’re going to free up more of
their time to do this. We’re putting in
place centralized call centers that
will re-direct up to 85 percent of the
call volumes from our busiest stores.
Q. How far along are you with these
new offerings?
A. HM: The ones that Larry just
mentioned are up and running for
clients that want to include them in
their plans. More than 200 clients
have opted for Maintenance
Choice, which allows plan partici-
pants the option of picking up their
90-day prescriptions at their local
CVS/pharmacy for the same cost as
mail order. Making things easier for
the consumer in this way improves
adherence, and that reduces
hospital stays and lowers overall
health care costs. So, it’s a win-win
for the payor and the patient.
Q. How are current and potential clients
responding to Proactive Pharmacy Care?
A. HM: We just had the most suc-
cessful selling season in the history
of our PBM. I can’t talk specifi cs,
but we see signifi cant new business
opportunities for 2010 as well. These
are tough economic times, and we’re
hearing from clients that they are
Since the merger of CVS and Caremark, executives Larry J. Merlo and Howard A. McLure
have been busy working together to develop a unique set of pharmacy health care offerings
and bring them to the marketplace. Below are excerpts from a recent interview where they
discuss Proactive Pharmacy Care, the economy, and some developments specifi c to our
PBM and retail operations.
LARRY J. MERLO
Executive Vice President of CVS Caremark Corporation and
President of CVS/pharmacy – Retail
HOWARD A. MCLURE
Executive Vice President of CVS Caremark Corporation and
President of Caremark Pharmacy Services
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