CVS 2012 Annual Report Download - page 18

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Please find page 18 of the 2012 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.

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We’re improving the value
proposition for providers
and health plans.
With the patient at the center, we can
help physicians and health plans achieve
better results.
More Coordinated Care
CVS Caremark is helping physicians improve
outcomes while lowering the cost of care.
With the implementation of the Affordable Care Act underway, we are seeing a dramatic increase in the focus on
health care value and the rise of new health care delivery systems, such as accountable care organizations. Payors
across the country are moving away from the traditional fee-for-service system, in which physicians are paid for
doing more procedures, and toward reimbursement models based on outcomes and cost effectiveness. Under
capitation models, for example, health plans will pay providers to treat patient populations at a fixed amount per
patient per month. Physicians who can produce quality outcomes cost-effectively will thrive in this new environ-
ment, and pharmacy care will play a major role. By moving patients to generic alternatives, improving adherence,
and closing gaps in care – all areas in which CVS Caremark leads the industry – we can potentially reduce the total
cost of care by more than 20 percent. We believe that no other set of care management interventions can help
providers manage their costs as effectively.
16
CVS CAREMARK 2012 ANNUAL REPORT