About CVS Health
CVS Health (NYSE: CVS) is a pharmacy innovation company helping people on their path to better health. Through our 7,800 retail pharmacies, more than 900 walk-in medical clinics, a leading pharmacy benefits manager with nearly 65 million plan members, and expanding specialty pharmacy services, we enable people, businesses and communities to manage health in more affordable, effective ways. This unique integrated model increases access to quality care, delivers better health outcomes and lowers overall health care costs. Find more information about how CVS Health is shaping the future of health at www.cvshealth.com.
CVS Caremark (NYSE: CVS) is the largest integrated pharmacy company in the United States and is dedicated to helping people on their path to better health. We effectively manage pharmaceutical costs and improve health outcomes through our pharmacy benefit management (PBM), mail order and specialty pharmacy division; CVS Caremark® Pharmacy Services; our CVS/pharmacy®, Longs Drugs® and Drogaria Onofre® retail drugstores; our retail-based medical clinic subsidiary, MinuteClinic®; and our online retail pharmacies, CVS.com and Onofre.com.br.
Our Operations and Supply Chain
CVS Caremark is headquartered in Woonsocket, RI. We employ more than 200,000 colleagues in 46 U.S. states, the District of Columbia, Puerto Rico, Brazil and Northern Ireland. As of December 31, 2013, we operated more than 7,660 retail drugstores, more than 800 retail health care clinics, 25 retail specialty pharmacy stores, 11 specialty mail order pharmacies, four mail service dispensing pharmacies, 17 onsite pharmacy stores, and our CVS.com, Onofre.com.br, MinuteClinic.com and Caremark.com websites. During 2013, we increased the number of CVS/pharmacy locations by a net 156 and added 162 new MinuteClinic locations. Our 2013 acquisition of Drogaria Onofre, a 45-store retail drugstore chain in Brazil, represents our first retail foray into the international markets. We work with external vendors inside and outside the United States to manufacture and supply our store and proprietary brands, which comprise approximately 18 percent of our front-of-store revenue. The remaining 82 percent is derived from the sale of national brands, which are manufactured by third-party suppliers and sold at CVS/pharmacy stores or on CVS.com.
Financial Results and Economic Impact
In 2013, CVS Caremark’s revenues were $127 billion, operating profit was $8 billion, and diluted earnings per share from continuing operations were $3.75.
We delivered $7.6 billion in employee wages and $1.7 billion in benefits; made payments to providers of capital of $1.6 billion; and paid $4.2 billion in income, property and employer taxes in the United States. Our charitable contributions and in-kind donations totaled nearly $75 million.
Prescription for a Better World
Our approach to corporate social responsibility (CSR) ties directly to our purpose: helping people on their path to better health. As a pharmacy innovation company, we work every day to provide products and services that help people on this journey. We also strive to address the other obstacles people might encounter on their path, such as the affordability and accessibility of their health care. We define these efforts and our CSR strategy as our Prescription for a Better World.
Prescription for a Better World is focused on three key priorities: building healthier communities, protecting the planet and creating economic opportunities. These tie directly to the CSR priorities we identified in 2013, and to many of the CSR initiatives we have supported for a long time.
Additional details about the issues we are addressing and the structure we have in place to deliver on our priorities are provided throughout this chapter.
Health in Action
The role of health care in the United States is evolving at breakneck speed. More Americans are becoming insured, the baby boomer population is rapidly aging, and there is a steady rise in the prevalence of chronic disease. While demand for health care services is increasing, the number of family practice physicians is decreasing, and our nation may not be producing as many qualified health care workers as we will ultimately need.
At CVS Caremark, we see these changes as both challenges and opportunities. As the United States’ largest pharmacy innovation company, we touch the lives of millions of patients and, in turn, have a unique perspective and opportunity to help people with their health care needs.
Our Prescription for a Better World reflects our commitment to deliver on our purpose, and our focus on Health in Action centers on improving patient outcomes and providing quality, affordable and accessible health care to the people and communities we serve. We strive to deliver on these priorities by continuously improving our services and product offerings and by leveraging our integrated business model – including more than 7,600 retail pharmacies, more than 800 MinuteClinic locations and pharmacy benefits management (PBM) services – to help people on their path to better health.
Planet in Balance
According to leading experts, climate change is one of the most pressing issues of our generation. Changes including extreme temperatures, rising sea levels and more frequent weather-related disasters are being observed and are projected to continue. The potential impacts of climate change are also varied. In some parts of the world, water scarcity is expected to increase; in other places, greater rainfall and rising temperatures will have a serious impact. At the same time, the global demand for natural resources is on the rise and we expect there will be increased competition for the materials used in the products we create.
Our purpose as a company is helping people on their path to better health, which we believe is intrinsically linked to the sustainability of our planet. As part of our Prescription for a Better World, we have made Planet in Balance a strategic priority and are working to mitigate climate change, reduce our resource use and embed sustainability into our products and supply chain.
Leader in Growth
Over the last decade, there has been greater emphasis on how a company operates and conducts its business affairs, beyond what it returns to its investors. While growth and return on investment will always be determinants of a successful business, we believe there is more to the equation when considering a company’s long-term viability and value to society.
First, a company employs people. In the case of CVS Caremark, we employ more than 200,000 people – our colleagues – the vast majority of whom are in the United States. Since one measure of a strong company is the vitality of its workforce, we understand the importance of providing jobs and career opportunities to people of all walks of life, and strive to create a workplace environment where our colleagues can grow, thrive and feel cared for.
The last decade has also ushered in the era of corporate transparency, making it easier for stakeholders, including shareholders, to assess a company’s business practices and determine how companies are addressing their CSR priorities and operating in a responsible and sustainable manner.
Being a Leader in Growth is a strategic focus of our Prescription for a Better World. We have three priorities in this area: investing in our people; operating with integrity; and conducting business responsibly.
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