CVS 2013 Annual Report Download - page 26

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Management’s Discussion and Analysis
of Financial Condition and Results of Operations
24
CVS Caremark
The following discussion and analysis should be read in conjunction with our audited consolidated financial state-
ments and Cautionary Statement Concerning Forward-Looking Statements that are included in this Annual Report.
Overview of Our Business
CVS Caremark Corporation (“CVS Caremark”, the “Company”, “we”, “our” or “us”), together with its subsidiaries,
is the largest integrated pharmacy health care provider in the United States. We are uniquely positioned to deliver
significant benefits to health plan sponsors through effective cost management solutions and innovative programs
that engage plan members and promote healthier and more cost-effective behaviors. Our integrated pharmacy
services model enhances our ability to offer plan members and consumers expanded choice, greater access and
more personalized services to help them on their path to better health. We effectively manage pharmaceutical costs
and improve health care outcomes through our pharmacy benefit management (PBM), mail order and specialty
pharmacy division, CVS Caremark® Pharmacy Services; our more than 7,600 CVS/pharmacy® and Drogaria Onofre®
retail stores; our retail-based health clinic subsidiary, MinuteClinic®; and our online retail pharmacies, CVS.com®
and Onofre.com.br.
We currently have three reportable segments: Pharmacy Services, Retail Pharmacy and Corporate.
Overview of Our Pharmacy Services Segment
Our Pharmacy Services business provides a full range of PBM services, including mail order and specialty pharmacy
and infusion services, plan design and administration, formulary management, discounted drug purchase arrange-
ments, Medicare Part D services, retail pharmacy network management services, prescription management systems,
clinical services and disease management services.
Our clients are primarily employers, insurance companies, unions, government employee groups, managed care
organizations and other sponsors of health benefit plans and individuals throughout the United States.
As a pharmacy benefits manager, we manage the dispensing of pharmaceuticals through our mail order pharma-
cies, specialty pharmacies and national network of nearly 68,000 retail pharmacies, consisting of approximately
41,000 chain pharmacies (which includes our CVS/pharmacy stores) and 27,000 independent pharmacies, to eligible
members in the benefit plans maintained by our clients and utilize our information systems to perform, among other
things, safety checks, drug interaction screenings and brand to generic substitutions.
Our specialty pharmacies support individuals that require complex and expensive drug therapies. Our specialty
pharmacy business includes mail order and retail specialty pharmacies that operate under the CVS Caremark® and
CarePlus CVS/pharmacy® names. Substantially all of our mail service specialty pharmacies have been accredited by
The Joint Commission, which is an independent, not-for-profit organization that accredits and certifies health care
organizations and programs in the United States.
We also provide health management programs, which include integrated disease management for 17 conditions,
through our Accordant® rare disease management offering. The majority of these integrated programs are accredited
by the National Committee for Quality Assurance.
In addition, through our SilverScript Insurance Company (“SilverScript”) subsidiary, we are a national provider of
drug benefits to eligible beneficiaries under the Federal Government’s Medicare Part D program. We currently provide
Medicare Part D plan benefits to approximately 4.3 million beneficiaries through SilverScript.