CVS 2012 Annual Report Download - page 7

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“ We believe that our business model is well aligned with the longer-
term trends in the industry and uniquely positions us to drive value
for our clients and customers in this rapidly changing environment.”
MinuteClinic’s 2,000 nurse practitioners and physician
assistants have cared for nearly 15 million patients, more
than eight million of them in the past three years alone.
Although acute care accounts for the majority of visits,
non-acute services such as immunizations, physicals,
and chronic disease monitoring have increased at a
compound annual growth rate of 41 percent over the
past three years. In 2012, these services accounted for
about 17 percent of total volume, a figure that should
continue to rise in the coming years.
We expect to open 150 new clinics in 2013, with a
long-term goal of operating 1,500 clinics in more than
35 states by 2017. MinuteClinic’s expanding footprint
supports our growth strategy on a number of fronts.
Collaborating with our PBM on service offerings
strengthens our appeal and value proposition to
regional and national accounts. It also increases
MinuteClinic’s value as a partner to some of the
nation’s leading health systems and positions us to
play an important role in new health care delivery
systems, such as accountable care organizations.
We are keenly focused on future growth opportunities
Given all the change that is underway in health care, it
is critically important that we are able to pivot to serve
the changing needs of our clients and customers. We
believe that our business model is well aligned with the
longer-term trends in the industry and uniquely positions
us to drive value for our clients and customers in this
rapidly changing environment. Given this, we’ve done
a substantial amount of work to more clearly define our
long-term strategic growth framework to ensure that
we capitalize on these significant opportunities.
Our enterprise growth strategy represents not a change,
but an evolution of our thinking. We’ve defined a three-
pronged strategy to capitalize on market opportunities
we foresee with our unique suite of assets:
•฀ ฀First,฀we฀will฀create฀greater฀health฀care฀value฀by฀
increasing the convenience and quality of care; we
are expanding and differentiating our services for
better health at lower costs.
•฀ ฀Second,฀we฀will฀serve฀new฀and฀existing฀customers฀in฀
new ways; our teams from across the enterprise are
focused on identifying and targeting opportunities to
better serve the fastest-growing customer segments.
•฀ ฀And฀third,฀we฀will฀optimize฀our฀enterprise฀assets฀by฀
delivering innovative solutions that leverage our
unmatched breadth of capabilities.
As we look ahead, our strategic growth framework will
provide the lens through which we will make strategic
investments and prioritize initiatives. We plan to grow
share organically in our core businesses, and we will
make investments and use bolt-on acquisitions to advance
faster in areas with higher market momentum. We expect
that this strategy will lead to continued healthy earnings
growth and substantial free cash flow, which we will
deploy to enhance shareholder value.
In closing, I want to thank our board of directors for their
valued support throughout the year. I also want to thank
all the other stakeholders that contribute to CVS Caremark’s
success – from our shareholders and customers to our
more than 200,000 colleagues. Our people are helping
us change the definition of pharmacy care, and they are
positioning us to play a major role in the evolving delivery
of health care in the United States.
Sincerely,
Larry J. Merlo
President and Chief Executive Officer
February 15, 2013
CVS CAREMARK 2012 ANNUAL REPORT
5