Walgreens 2006 Annual Report Download - page 7

How should pharmacy impact healthcare?
Bernauer:Today, well over 20 percent of the prescriptions
doctors write are never filled, and between 50 and 90 percent of
patients don’t take medications as instructed. The consequences
are estimated at 125,000 deaths annually and $100 billion in
additional hospital and nursing home admissions. It’s a huge
bill borne in large part by taxpayers once Americans hit the
Medicare rolls at age 65. With the new Part D prescription
program, the government has the power to measure prescrip-
tion use in terms of health outcomes and to understand the
power of pharmaceuticals to keep people healthier and
out of hospitals.
We’re moving toward electronic medical records that will
provide clear visibility into patients’ adherence to their drug
therapy. Pharmacists will soon be paid to play a more proactive
role in ensuring patients take medication correctly. We’re
on the cusp of a day when pharmacists have the information
to help improve their patients’ health and thus lower the
nation’s healthcare bill.
What does the management transition to a new
CEO mean?
Rein: Very little. The personalities may be different, but not
the strategy. We all build on the shoulders of those who came
before us, and work to improve this company for those who
follow. The challenge is to take advantage of people’s minds
across Walgreens. No way do all ideas flow from the corporate
office. We’re taking the time to listen – really listen – to folks from
the stores to headquarters about what’s working and what’s not.
Looking ahead, we see nothing but opportunity. Of course
there will be challenges … every day. Some expected … some
out of left field. Our greatest challenge is also our greatest
opportunity – to attract and develop the people who will lead
Walgreens 10, 20 and 40 years from now. With our growth,
there’s no time for “slow cooking.” We’re in a “microwave”
mode, where new folks reach management levels quickly.
Investments in recruitment, training and development are
consequently a top priority.
We’d like to end by thanking Jack Schwemm, who is retiring
from our Board of Directors after 21 years. Jack’s quick mind,
business acumen and candid personality have helped four
CEOs make better decisions. He’s a director who asks the
tough questions, and we will miss him.
At the same time we welcome Nancy Schlichting, who was
elected to the Board in October. As president and CEO of
the Henry Ford Health System in Detroit, Nancy will bring
valuable knowledge of the overall healthcare industry.
We’ll close with heartfelt thanks to every reader of this report.
Your confidence in our company’s future is so important …
and so appreciated.
David W. Bernauer
Chairman
Jeffrey A. Rein
President and Chief Executive Officer
2006 Walgreens Annual Report Page 5
Number of Prescriptions Filled
In millions