Cvs Health Corporation · NYSE:CVS
Cvs Health — Investor Day (June 2019)
27 slides from Cvs Health's investor day presentation, Jun 4, 2019
Slide 1: Building the Most Consumer-Centric Health Company
Building the Most Consumer-Centric Health Company Alan Lotvin, MD Executive Vice President & Chief Transformation Officer
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of CVS Health Corporation. By their nature, all forward-looking statements involve risks and uncertainties. Actual
Slide 3: A team with a diverse experience set to lead our company through a time of change
A team with a diverse experience set Quinby Squire to lead our company through a time of change Chief Financial Officer Bruce Culleton, MD Kidney Care Dave Edelman Chief Marketing Officer Dan Finke Transformation Products & Services Kari Holloway Kidney Care Betsy Ferguson Legal Megan Hall Strategy
Slide 4: Agenda
Agenda Strategy for accelerating growth Our differentiated consumer experience Product roadmap and value creation 4
Slide 5: A truly consumer-centric health company
A truly consumer-centric health company Be local Community-focused Within 3 miles of ~70% of US population Make it simple Technology-enabled Connecting physical and digital experiences Improve health Solving unmet needs to help achieve best health More than 30K health care professionals 5
Slide 6: Our community assets differentiate us
Our community assets differentiate us Consumers invite us into We are embedded in their Our stores are in their their homes digital lives, in their hands community – a local “hub” 6
Slide 7: We meet consumers where they are
We meet consumers where they are 7
Slide 8: We're reinventing local health care delivery with our community assets
We’re reinventing local health care delivery with our community assets ONE EXAMPLE: MinuteClinic Legacy ® New services services in 2019 MinuteClinic® can MinuteClinic include: manage ~ 80% of the scope of typical • Sleep apnea Traditional primary care practice screening primary care Currently over 1
Slide 9: Transformational products and services
Transformational products and services Solve customers’ Accelerate in fastest biggest problems growing segments Deliver true Differentiate innovation legacy businesses 9
Slide 10: Our product and service portfolio targets the biggest challenges in health care
Our product and service portfolio targets the biggest challenges in health care Comprehensive New consumer facing chronic care and Risk carve-outs products disease management • 60% adults have chronic disease1 • $3T in spend in U.S.2 • $50B spent by Aetna clients3 Optimize government Home programs A
Slide 11: Agenda
Agenda Strategy for accelerating growth Our differentiated consumer experience Product roadmap and value creation 11
Slide 12: 360° member view
360° member view enables personalized engagement Complex chronic Identify consumer risk Common chronic stratification Healthy Personalized engagement • Coordinate care Impactful • Integrate member context interventions • Influence meaningful moments 12
Slide 13: Transforming the patient journey
JOSEPH Transforming the 48 years old patient journey • Has type-2 diabetes • Infrequently sees his primary care doctor • On medication Multiple community touchpoints • Demanding job Connecting physical and virtual SUSAN experience 62 years old Two-way data flows to • Has difficult-to-control high de
Slide 14: Joseph's Journey
JOSEPH’S JOURNEY Identified as needing an annual diabetes exam, Joseph is counseled while filling his prescription. Dietician Primary care provider Pharmacy Care manager MinuteClinic® 14
Slide 15: Joseph's Journey
JOSEPH’S JOURNEY MinuteClinic® administers annual diabetes exam. Need for additional support identified. Dietician Primary care provider Pharmacy Care manager MinuteClinic® 15
Slide 16: Joseph's Journey
JOSEPH’S JOURNEY Care manager visits Joseph at home and creates a care plan to keep him on track. Dietician Primary care provider Joseph’s care plan: Annual diabetic exam Medication reconciliation Pharmacy Care manager In home assessment Blood sugar testing Meet with dietician Follow up with special
Slide 17: Susan's Journey
SUSAN’S JOURNEY Analytics identify elevated risk. Care management contacts Susan. Modality clinic Primary care provider Home Nephrologist hemodialysis device Pharmacy Care manager Note: Home hemodialysis device still pending FDA approval 17
Slide 18: Susan's Journey
SUSAN’S JOURNEY Discusses options for future renal replacement therapy and makes a plan for future dialysis. Modality clinic Primary care provider Home Nephrologist hemodialysis device Pharmacy Care manager Note: Home hemodialysis device still pending FDA approval 18
Slide 19: Susan's Journey
SUSAN’S JOURNEY Starts home hemodialysis and is able to continue working. Modality clinic Primary care provider Home Nephrologist hemodialysis device Pharmacy Care manager Note: Home hemodialysis device still pending FDA approval 19
Slide 20: The CVS Health difference
The CVS Health difference Hub Hand Home Community touchpoints are our differentiator: Traditional engagement tools • Changing behavior by being a part of daily life Analytics Table • Improving outcomes associated Stakes with chronic disease Data 20
Slide 21: Agenda
Agenda Strategy for accelerating growth Our differentiated consumer experience Product roadmap and value creation 21
Slide 22: Our product and service portfolio targets the biggest challenges in health care
Our product and service portfolio targets the biggest challenges in health care Comprehensive New consumer facing chronic care and Risk carve-outs products disease management • Greenfield opportunity • $180B spend for oncology / • Substantial focus of health kidney disease5 care VCs • Major client p
Slide 23: How we'll create value across the enterprise
How we’ll create value across the enterprise Medical cost Membership Expanded use of Increased consumer Open platform savings growth CVS assets satisfaction and and new retention businesses Commercial insured Plan sponsors Pharmacy Improving the Payor agnostic consumer experience solutions Medicare
Slide 24: Transformation product timeline
Transformation product timeline 2019 2020 2021 2022+ Comprehensive chronic care and disease management New consumer facing products Optimize government programs Risk carve-outs Home hemodialysis Analytics products 24
Slide 25: The portfolio is projected to drive significant operating income
The portfolio is projected to drive significant operating income 2022 Long Term ~$850M in projected operating income for the enterprise10 ~$2.5B in projected operating income for the enterprise10 Insured medical cost savings ~$450M New Insured 55% businesses/ medical other 35% cost savings ~$1B 40%
Slide 26: Building the most consumer-centric health company
K E Y TA K E AW AY S Building the most consumer- centric health company Becoming the most consumer-centric health company Differentiating through our community touchpoints Building a balanced growth portfolio supporting all businesses Projecting ~$2.5B of operating income over the long term 26
Slide 27: Endnotes
Endnotes 1. 6 in 10 adults in the US have a chronic disease; Source: CDC 2. $3T in US spend on people with chronic and mental health conditions; Source: CDC 3. $50B in chronic care spend within Aetna membership in 2017 (includes insured and ASO); Source: Aetna 4. $6.3B in bonus payments from CMS for