Express Scripts 2011 Annual Report Download - page 4

Express Scripts 2011 Annual Report
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By any measure, 2011 was a
defining year for our company. At
this time last year, no one could
have anticipated the decisions and
choices we would face. We did not
expect an impasse with Walgreens.
We could not predict the ongoing
impact of a sluggish economy. And
while the acquisition of Medco
Health Solutions may have been part
of a long-term strategic plan, we
couldn’t have predicted that events
would unfold as they did, allowing
the merger to take place this year.
As challenging as these events
may appear, Express Scripts is at
its best when faced with obstacles
other companies might view as
insurmountable. We see them as
opportunities.
For example, our response to
Walgreens – through planning,
significant client support and
next-to-flawless execution – was
the largest retail market share
movement in the history of
pharmacy, accomplished with very
little disruption. We remain open
to discussions with Walgreens on
returning to our network, if terms
and conditions are acceptable to our
clients and patients.
We Invest in Tomorrow, Even
During Tough Times Today
Economies worldwide struggled
throughout 2011. A stagnant
economy affects us when our clients
have fewer new members with health
benefits and when our existing
members cut back on the use of
their benefits. These factors have
challenged us to develop new ideas
to lower the cost of prescriptions,
while continuing to deliver better
health outcomes. Our ongoing
investment in Consumerology®, the
application of behavioral sciences
to healthcare, is a testament to
the successful use of innovation to
drive down the costs of prescription
medication for the nation at large.
Holding true to our legacy
of innovation, we continue
to break ground in our
industry – and in
healthcare as a whole.
For our industry in 2012, a new
year means a new environment.
Healthcare reform hovers on the
horizon; its unknowable aspects
make planning for the future a
tremendous challenge for plan
sponsors. Nonadherence continues
to be a costly problem. Patients
are beginning to demand real-time
information in order to take control
of their healthcare. Clients demand
lower-cost solutions. Physicians
are overburdened, and an aging
population presents a greater-than-
ever need to a system straining to
remain viable.
In light of these challenges, we
are proactively identifying and
addressing future needs that our
clients have yet to recognize.
Holding true to our legacy of
To Our Stockholders
innovation, we continue to break
ground in our industry – and in
healthcare as a whole. In December,
we introduced ScreenRx®, a program
that features early-detection models
to identify patients with potential
nonadherence issues associated
with critical diseases such as
diabetes, high cholesterol and
hypertension. Tailored interventions
that best suit the individual are
then recommended. By fighting
nonadherence before it begins,
we are setting a new standard in
healthcare and blazing yet another
industry trail that will positively
benefit America’s families.
The Right Merger
at the Right Time
Since our inception more than 25
years ago, we’ve had an unwavering
focus on enabling better health and
value while eliminating wasteful
spending. Through innovation,
seamless execution and a steadfast
commitment to our business model
of alignment, we have identified and
tackled inefficiencies in healthcare.
We have a history of complementing
our strong organic growth with
successful, strategic mergers and
acquisitions, creating opportunities
to enter new business segments,
offer new services and increase the
scope of our business.
On July 21, 2011, we announced
our intent to merge with Medco,
creating the potential to transform
not only the pharmacy benefit
management industry, but American