CVS 2015 Annual Report Download - page 25

Download and view the complete annual report

Please find page 25 of the 2015 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.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

23
2015 Annual Report
As a pharmacy benefits manager, we manage the dispensing of prescription drugs through our mail order pharmacies,
specialty pharmacies, long-term care pharmacies and national network of more than 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 who require complex and expensive drug therapies. Our specialty
pharmacy business includes mail order and retail specialty pharmacies that operate under the CVS Caremark®,
CarePlus CVS PharmacyTM, Navarro® Health Services and Advanced Care Scripts 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 offer specialty infusion services and enteral nutrition services through Coram LLC and its subsidiaries
(collectively, “Coram”). With Specialty ConnectTM, which integrates our specialty pharmacy mail and retail capabili-
ties, we provide members with disease-state specific counseling from our experienced specialty pharmacists and
the choice to bring their specialty prescriptions to any CVS Pharmacy location. Whether submitted through our
mail order pharmacy or at a CVS Pharmacy, all prescriptions are filled through the Company’s specialty mail order
pharmacies, so all revenue from this specialty prescription services program is recorded within the Pharmacy
Services Segment. Members then can choose to pick up their medication at their local CVS Pharmacy or have it
sent to their home through the mail. In August 2015, we expanded our offerings with the acquisition of Omnicare
which included its specialty pharmacy operating under the Advanced Care Scripts name.
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 5.0 million beneficiaries through SilverScript, including our individual
and employer group waiver plans.
The Pharmacy Services Segment operates under the CVS Caremark® Pharmacy Services, Caremark®, CVS CaremarkTM,
CarePlus CVS PharmacyTM, Accordant®, SilverScript®, Coram®, CVS SpecialtyTM, NovoLogix®, Navarro® Health
Services and Advanced Care Scripts names. As of December 31, 2015, the Pharmacy Services Segment operated
24 retail specialty pharmacy stores, 11 specialty mail order pharmacies, five mail order dispensing pharmacies, and
83 branches for infusion and enteral services, including approximately 73 ambulatory infusion suites and six centers
of excellence, located in 40 states, Puerto Rico and the District of Columbia.
Overview of Our Retail/LTC Segment
Our Retail/LTC Segment sells prescription drugs and a wide assortment of general merchandise, including over-
the-counter drugs, beauty products and cosmetics, personal care products, convenience foods, photo finishing,
seasonal merchandise and greeting cards. With the acquisition of Omnicare, the Retail/LTC Segment now also
includes the distribution of prescription drugs, related pharmacy consulting and other ancillary services to chronic
care facilities and other care settings, as well as commercialization services which are provided under the name
RxCrossroads®. We added approximately 1,672 pharmacies through the acquisition of Target’s pharmacies, thereby,
expanding our presence in new and existing markets. The stores within Target will only sell prescription drugs and
over-the-counter drugs that are required to be behind the counter. Our Retail/LTC Segment derives the majority of its
revenues through the sale of prescription drugs, which are dispensed by our more than 30,000 pharmacists. The role
of our retail pharmacists is shifting from primarily dispensing prescriptions to also providing services, including flu
vaccinations as well as face-to-face patient counseling with respect to adherence to drug therapies, closing gaps
in care, and more cost-effective drug therapies. Our integrated pharmacy services model enables us to enhance
access to care while helping to lower overall health care costs and improve health outcomes.