Profile: CVS Health Corp (CVS.N)
CVS Health Corporation, incorporated on August 22, 1996, together with its subsidiaries, is a pharmacy company. The Company operates through three business segments: Pharmacy Services, Retail Pharmacy and Corporate. The Pharmacy Services segment provides a range of pharmacy benefit management (PBM) services. The Retail Pharmacy segment sells prescription drugs and an 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 through the Company's retail stores, online retail pharmacy Websites and retail healthcare clinics. The Corporate segment provides management and administrative services to support the overall operations of the Company.
The Pharmacy Services segment provides PBM services, such as plan design offerings and administration, formulary management, Medicare Part D services, mail order pharmacy, specialty pharmacy, retail pharmacy network management, prescription management systems, clinical services, disease management programs and medical pharmacy management. In addition, through its subsidiary, SilverScript Insurance Company (SilverScript), the Company provides drug benefits to eligible beneficiaries under the federal government's Medicare Part D program. The Pharmacy Services segment operates under the CVS/caremark Pharmacy Services, CVS Caremark, CVS/caremark, CarePlus CVS/pharmacy, CVS/specialty, RxAmerica, Accordant, SilverScript, Novologix, Coram and Navarro Health Services names. As of June 30, 2015, the Pharmacy Services segment operated 24 retail specialty pharmacy stores, 11 specialty mail order pharmacies, four mail service dispensing pharmacies, and 85 branches for infusion and enteral services, including approximately 72 ambulatory infusion suites and six centers of excellence, located in 40 states, Puerto Rico and the District of Columbia. The Company, through its wholly owned subsidiary, Omnicare, Inc., provides pharmacy services to long term care facilities.
The Company's clients sponsor pharmacy benefit plans that facilitate the ability of eligible members in these plans to receive prescribed medications. It assists its clients in designing pharmacy benefit plans. It also administers these benefit plans selected by its clients and assists them in monitoring the plans through communications, as well as through a formal annual client review.
The Company utilizes an independent panel of doctors, pharmacists and other medical experts, referred to as its Pharmacy and Therapeutics Committee, to select drugs for inclusion on its formularies. Its formularies provide recommended products in a range of drug classes to ensure member access to clinically appropriate alternatives under the client's pharmacy benefit plan. It participates in the administration of the drug benefit added to the Medicare program under Part D of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) through the provision of PBM services to its health plan clients and other clients that have qualified as Medicare Part D prescription drug plans (PDP) and by offering Medicare Part D pharmacy benefits through SilverScript, a PDP approved by the Centers for Medicare and Medicaid Services (CMS). It also assists employers, unions and other health plan clients that qualify for the retiree drug subsidy made available under the MMA by collecting and submitting eligibility and/or drug cost data to CMS in order for them to obtain the subsidy. It also operates a network of smaller mail order specialty pharmacies. Its staff pharmacists review mail order prescriptions and refill requests with the assistance of its prescription management systems. Its specialty pharmacies support individuals that require drug therapies.
The Company maintains a national network of more than 68,000 retail pharmacies, consisting of approximately 41,000 chain pharmacies (which include its CVS/pharmacy stores) and 27,000 independent pharmacies, in the United States, Puerto Rico, District of Columbia, Guam and the Virgin Islands. It dispenses prescription drugs both directly, through one of its mail order or specialty pharmacies, or through a network of retail pharmacies. It offers multiple clinical programs and services to help clients manage overall pharmacy and healthcare costs in a clinically appropriate manner. It offers various utilization management, medication management, quality assurance, adherence and counseling programs. Its Accordant programs include integrated rare disease management programs, which cover diseases, such as rheumatoid arthritis, Parkinson's disease, seizure disorders and multiple sclerosis. It also offers a technology platform for specialty drugs billed under the medical benefit.
The Company operates a small number of claim adjudication platforms to support its Pharmacy Services segment. These information systems incorporate architecture that centralizes the data generated from filling mail order prescriptions, adjudicating retail pharmacy claims and fulfilling other services it provides to PBM clients.
The Company's Retail Pharmacy segment, as of June 30, 2015, included 7,870 retail drugstores (of which 7,812 operated a pharmacy), 18 onsite pharmacies, 997 retail medical clinics, and the online retail Websites, CVS.com, Navarro.com and Onofre.com.br. The Retail Pharmacy segment is divided into subgroups, including Pharmacy, Front store, MinuteClinic and Onsite Pharmacies. The retail drugstores are located in 44 states, the District of Columbia, Puerto Rico and Brazil operating primarily under the CVS/pharmacy, CVS, Longs Drugs, Navarro Discount Pharmacy and Drogaria Onofre names. The retail healthcare clinics operate under the MinuteClinic name, and 989 are located within CVS/pharmacy stores. It operates a limited number of small pharmacies located at client sites under the CarePlus, CarePlus CVS/pharmacy, CVS/pharmacy or Wellness Works Pharmacy name, which provide certain health plan members and customers with an alternative for filling their prescriptions.
The Company competes with Express Scripts, OptumRx, Catamaran, Prime Therapeutics, MedImpact, Humana, Walgreens, Rite Aid, Wal-Mart and Target.
CVS Health Corp
1 Cvs Dr
WOONSOCKET RI 02895-6146
Company Web Links
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