Express Scripts 2014 Annual Report Download - page 27
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Express Scripts 2014 Annual Report
• mandatedchangestoclientplandesigns
• changestocertainhealthcarefraudandabuselaws
Thescopeandultimateeffectofsuchprovisionsonourbusinessremainsuncertainandwecannotpredictthe
impactanyinterimorfinalimplementationwillhaveonourbusinessandresultsofoperations.
We face risks associated with general economic conditions.
Thestateoftheeconomycanhaveasignificantimpactonourbusinessandresultsofoperations.Anunfavorable
oruncertaineconomicenvironmentcouldsignificantlyandadverselyaffectourbusinessesandprofitabilityandgeneratethe
followingriskstoourbusiness:
• clients,employersandotherbenefitprovidersservedbyourclientsmayreduceorslowthegrowthoftheir
workforceorcoveredmembership,ormayelecttodiscontinueordiminishprovidedbenefits,whichwould
resultinareductioninthenumberofmembersweserve
• consumersmaybelesswillingorabletoincurhealthcarerelatedexpenses,whetherduetopersonaleconomic
circumstances,reductioninthelevelofthehealthcarebenefitprovidedtotheconsumerorotherwise,which
wouldresultinlowerthananticipatedutilizationofourservices
• ourclients,orpotentialclients,mayincreasedemandsandexpectationswithrespecttopricing,rebatesor
servicelevels(includingwithrespecttoperformanceguarantees),whichcouldimpactmargins,orourability
toobtainnewclientsorretainexistingclients
• ourclients,orpotentialclients,maybelesswillingtopurchaseadditionalproductsandservicesfromus,
whichwouldimpactourfinancialperformance
Unfavorableanduncertaineconomicconditionsmayalsocausedisruptionsinthecreditmarketswhichcould
increaseourcostofborrowingormakecreditunavailableonacceptabletermstotheextentweneedadditionalfunds.Such
developmentsmayadverselyaffectourbusinessandresultsofoperations.
Our ability to conduct operations depends on the security and stability of our technology infrastructure as well as the
effectiveness of, and our ability to execute, business continuity plans across our operations. A failure in the security of our
technology infrastructure or a significant disruption in service within our operations could materially adversely affect our
business and results of operations.
Wemaintain,andaredependenton,atechnologyinfrastructureplatformessentialformanyaspectsofourbusiness
operations.Wehavemanydifferentinformationsystemsanditisimperativewesecurelystoreandtransmitconfidentialdata,
includingpersonalhealthinformation,whilemaintainingtheintegrityofourconfidentialinformation.Anyfailuretoprotect
againstasecuritybreachoradisruptioninservicecouldnegativelyimpactourreputationandmateriallyadverselyimpactour
businessoperationsandresultsofoperations.Ourtechnologyinfrastructureplatformrequiressignificantresourcestomaintain
andenhancesystemsinordertokeeppacewithrapidtechnologicalchangeaswellasevolvingindustryandregulatory
standards.Emergingandadvancedsecuritythreats,includingcoordinatedattacks,requireadditionallayersofsecuritywhich
maydisruptorimpactefficiencyofoperations.Fromtimetotime,wemayobtainsignificantportionsofoursystems-relatedor
otherservicesorfacilitiesfromindependentthirdparties,whichmaymakeouroperationsvulnerabletosuchthirdparties’
failuretoadequatelyperformorprotectagainstasecuritybreachorservicedisruption.Intheeventweorourvendors
experience:
• amalfunctioninbusinessprocesses
• securitybreaches(includingcyberattacks)
• failuretomaintaineffectiveandup-to-dateinformationsystemsor
• otherwiseexperienceunauthorizedornon-compliantactionsbyanyindividual
Wecouldincurdisruptionstoourbusinessoperationsornegativeimpactstopatientsafety,customerandmember
disputes,damagetoourreputation,exposurestoriskofloss,litigationorregulatoryviolations,increasedadministrative
expensesorotheradverseconsequences.
Weoperatedispensingpharmacies,callcenters,datacentersandcorporatefacilitiesthatdependonthesecurityand
stabilityofourtechnologyinfrastructure.Ourtechnologyinfrastructurecouldbedisruptedbyanynumberofeventsincludinga
generalfailureofthetechnology,malfunctionofbusinessprocessoradisasterorothercatastrophicevent.Suchdisruptions
could,temporarilyorindefinitely,significantlyreduce,orpartiallyortotallyeliminateourabilitytoprocessanddispense
prescriptionsandprovideproductsandservicestoourclientsandmembers.Anysuchservicedisruptionatthesefacilitiesorto
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