CVS Health Corporation · NYSE:CVS
CVS Health — Investor Day (December 2015)
25 slides from CVS Health's investor day presentation, Dec 16, 2015
Slide 1: Serving Patients Across the Continuum of Care
Serving Patients Across the Continuum of Care Rocky Kraft Executive Vice President & President Omnicare President,
Slide 2: Agenda
Agenda Senior Care Market Overview Omnicare: A Leader in Long-term Care Pharmacy CVS/omnicare Positioned to Drive Value in an Evolving Health Care Market 2
Slide 3: Aging Population Shaping U.S. Health Care System
Aging Population Shaping U.S. Health Care System Under 65 Years Aged 65-84 Years Aged 85+ Years (lives, millions) (lives, millions) (lives, millions) +4% +56% +45% 285 65 9 274 278 50 41 7 6 2015 2020 2030 2015 2020 2030 2015 2020 2030 10,000 baby boomers projected to turn 65 every day for next 15 y
Slide 4: Increase in Older Population Driving the Need for Long-term Care Services and Support
Increase in Older Population Driving the Need for Long-term Long term Care Services and Support Population Requiring Trends in Need for LTC Services LTC Services (lives, millions) • 70% of people over age 65 will require some form of LTSS +80% 27 • Number of frail adults rising rapidly with expandin
Slide 5: Navigating Through the Senior Care Continuum
Navigating Through the Senior Care Continuum Low Acuity High Acuity Residential/ Independent p Assisted Skilled Home Aide Living Living Nursing (IL) (ALF) (SNF) Social activities, SERVICES Cooking, cleaning, Cooking cleaning Dining, social, Dining social and 24-hour 24 hour assistance with PROVIDED
Slide 6: Agenda
Agenda Senior Care Market Overview Omnicare: A Leader in Long-term Care Pharmacy CVS/omnicare Positioned to Drive Value in an Evolving Health Care Market 6
Slide 7: An Industry Leader in Long-term Care Pharmacy
An Industry Leader in Long-term Care Pharmacy Institutional Post-acute Revenue Omnicare Advantages ($, billions) • Leading pharmacy provider to elderly in chronic care settings Omnicare 4.8 • $4.8 billion in revenue (1) • Approximately 100 million Next largest 1.9 scripts dispensed annually • Approx
Slide 8: Omnicare Value Proposition Gives Us a Competitive Advantage in the Long-term Care Market
Omnicare Value Proposition Gives Us a Competitive Advantage in the Long Long-term term Care Market N ti Nationwide id footprint f t i t Efficient operations Robust clinical infrastructure Innovative technology 8
Slide 9: Omnicare's Nationwide Footprint Makes Us an Ideal Partner for National Providers and Their Residents
A D VA N TA G E # 1 Omnicare’s Nationwide Footprint Makes Us an Ideal Partner for National Providers and Their Residents 80% within 50 miles 9
Slide 10: CVS/omnicare's Expanded Retail Footprint Further Enhances Our Ability to Serve Our Customers
A D VA N TA G E # 1 CVS/omnicare’s Expanded Retail Footprint Further Enhances Our Ability to Serve Our Customers 80% within 5 miles 10
Slide 11: Operating Efficiency Ensures Our Low-cost Position
A D VA N TA G E # 2 Operating Efficiency Ensures Our Low-cost Position Infrastructure • Hub and spoke network − Enabler for automation, efficiency and quality service Automation • Hub pharmacies utilize automation technologies − Improves dispensing accuracy while reducing operating costs On-site Dis
Slide 12: Our Robust Clinical Services Drive Better Outcomes While Lowering Costs
A D VA N TA G E # 3 Our Robust Clinical Services Drive Better Outcomes While Lowering Costs On-site Consultant Clinical Intervention Clinical Pharmacists Centers Differentiation • Patient-facing services • Formulary adherence • Quality-based cost within institution containment • Generic penetration
Slide 13: Innovative Technology Solutions Resonate with Our Customers and Drive Higher Retention Rates
A D VA N TA G E # 4 Innovative Technology Solutions Resonate with Our Customers and Drive Higher Retention Rates Omniview MyOmniview Omnicare’s secure web-based worksite for customer facilities, prescribers and patients 13
Slide 14: Innovative Technology Solutions: MyOmniview
A D VA N TA G E # 4 Innovative Technology Solutions Resonate with Our Customers and Drive Higher Retention Rates • Designed g for residents of communities and their caregivers • Access financial information and health records • Talk T lk with ith a pharmacist h i t MyOmniview Omnicare’s secure web-b
Slide 15: Innovative Technology Solutions: Omniview
A D VA N TA G E # 4 Innovative Technology Solutions Resonate with Our Customers and Drive Higher Retention Rates • Secure customer facing technology • Optimize cost effectiveness • Enhance medication management • Expedite patient care Omniview Omnicare’s secure web-based worksite for customer facili
Slide 16: Agenda
Agenda Senior Care Market Overview Omnicare: A Leader in Long-term Care Pharmacy CVS/omnicare CVS/Omnicare Positioned Positioned to to Drive Drive Value Value in in an an Evolving Health Care Market 16
Slide 17: Multiple Opportunities for Driving Enterprise Value from CVS/omnicare Near- and Long-term
Multiple Opportunities for Driving Enterprise Value from CVS/omnicare Both Near Near- and Long Long-term term Deliver Future Drive Revenue Leverage Operational Synergies Shared Efficiencies Phase-in • Focused on Services transitions of Integrating Systems • Combined operational care, market Procurem
Slide 18: CVS/omnicare Value Proposition Provides New Channels to More Effectively Serve Broader Population
CVS/omnicare Value Proposition Provides New Channels to More Effectively Serve Broader Population Skilled Assisted Independent p Home Nursing Living Living Care Facilities Facilities Transitions Segmented Broader Care of Care Offering Services Coordination CVS/omnicare best positioned to serve senio
Slide 19: Enhanced Offering for Skilled Nursing Driven by Improved Coordination During Care Transitions
Enhanced Offering for Skilled Nursing Driven by Improved Coordination During Care Transitions Completeness Skilled Assisted of Service Offerings Independent Home Nursing Living Living Care Facilities Facilities Omnicare CVS/omnicare ISSUE SOLUTIONS RESULTS • Medication availability • CVS/pharmacy re
Slide 20: Segmented Assisted Living Offering in Development to Better Align with Varying Resident Needs
Segmented Assisted Living Offering in Development to Better Align with Varying Resident Needs Completeness Skilled Assisted of Service Offerings Independent Home Nursing Living Living Care Facilities Facilities Omnicare CVS/omnicare ISSUE SOLUTIONS RESULTS • Acuity level differences • Segmented offe
Slide 21: Consumer-driven Effort to Better Target Rapidly Growing Independent Living Market
Consumer-driven Effort to Better Target Rapidly Growing Independent Living Market Completeness Skilled Assisted of Service Offerings Independent Home Nursing Living Living Care Facilities Facilities Omnicare CVS/omnicare ISSUE SOLUTIONS RESULTS • Institutional pharmacy • Retail-led solution that • N
Slide 22: Care Coordination Offering to Better Serve Seniors Requiring More Acute Services in Home Setting
Care Coordination Offering to Better Serve Seniors Requiring More Acute Services in Home Setting Completeness Skilled Assisted of Service Offerings Independent Home Nursing Living Living Care Facilities Facilities Omnicare CVS/omnicare ISSUE SOLUTIONS RESULTS • Home care represents the • Replicate i
Slide 23: The Right Strategy for an Evolving Health Care Market
The Right Strategy for an Evolving Health Care Market Omnicare has a differentiated service offering focused Demonstrating Value on q quality, y, service and expertise p to customers and to People, Payors and Providers their residents Omnicare, as a leader in senior pharmacy services, Growing g the
Slide 24: Appendix
Appendix , CVS/Omnicare, Omnicare, Omniview, and MyOmniview are trademarks or registered trademarks of CVS Pharmacy, Inc.
Slide 25: How Institutional Pharmacy Services Differ
How Institutional Pharmacy Services Differ Retail Institutional Access Open to the public Closed door pharmacies Deliveries Deli eries to facility facilit average a erage Dispensing Primarily at pharmacy counter 3 times per day Standard compliant Packaging Primarily bottles/vials specialized unit do