CVS 2010 Annual Report Download - page 16

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At CVS Caremark, we see a significant opportunity
to reduce the nearly $300 billion that is spent annually
as a result of non-adherence to prescribed medica-
tions and other forms of sub-optimal pharmacy care.
As the nation’s largest pharmacy health care provider,
we can accomplish this through our differentiated
PBM offerings, our leadership in clinical programs and
specialty pharmacy, our unmatched retail footprint,
and our growing base of MinuteClinic locations. Our
strategy is to utilize these elements of our integrated
pharmacy services model to lower health care costs
while improving the health of those we serve. It’s
important to remember that pharmacy care remains
one of the most cost-effective ways of treating disease,
so we are well-positioned to slow the rise in health
care costs even as we encourage appropriate utiliza-
tion of prescription drugs. We’ll have more to say
on this topic and the state of our business in general.
Let’s start, though, with a quick overview of the past
year’s performance.
Our 2010 Financial Performance and
Commitment to Enhancing Shareholder Value
2010 marked a year of substantial progress for
our company despite continued challenges in the
broader economy. We successfully navigated
through a challenging retail and consumer environ-
ment, delivering industry-leading same-store sales
growth, solid expense control, and significantly
DEAR FELLOW SHAREHOLDER:
U.S. health care costs are expected to rise 6 percent annually
over the next decade, pushing the total spent in the United
States to around $5 trillion in 2020. The alarming growth of
chronic disease in an aging U.S. population will drive much
of this increase, and companies that can find a way to help
employers, insurers, and plan members rein in the related
costs are poised to benefit.
THOMAS M. RYAN (right)
Chairman of the Board and Chief Executive Officer
LARRY J. MERLO (left)
President and Chief Operating Officer
– 12 –
CVS Caremark 2010 Annual Report