CVS Health Corporation · NYSE:CVS
CVS Health — CVS Caremark — Investor Day (December 2013)
20 slides from CVS Health's investor day presentation, Dec 18, 2013
Slide 1: Unlocking Adherence Through Pharmacy Excellence
Unlocking Adherence Through Pharmacy Excellence Josh Flum Senior Vice President, Retail Pharmacy Analyst Day December 18, 2013
Slide 2: Agenda
Agenda ! Significantly outperforming our competitors ! Best-in-class clinical and adherence programs are a key driver of our growth ! Advancing to next generation of clinical programs … with a focus on adherence 2
Slide 3: Outperformed Competition Over Last Five Years
Outperformed Competition Over Last Five Years Five-year Script Growth 27% Caremark Book of Business 9% 5% 13% All Other Other Chain Total Retail Drug Market Note: 90-day prescriptions are counted as 1 script. Source: IMS Health 3
Slide 4: Agenda
Agenda ! Significantly outperforming our competitors ! Best-in-class clinical and adherence programs our growth ! Advancing to next generation of clinical programs … with a focus on adherence 4
Slide 5: Head Start In Building Clinical Programs Has Led To Sustainable Advantage
Head Start In Building Clinical Programs Has Led To Sustainable Advantage For CVS Caremark 2007 2008 2009 – 2013 2014 & Beyond Merger between CVS and First to market with suite New programs, system & New capabilities, improved Caremark highlights of retail adherence workflow integration, and connect
Slide 6: Scope And Breadth Of Adherence Programs Have Expanded Since Launch
Scope And Breadth Of Adherence Programs Have Expanded Since Launch … Live Clinical Interventions Expanding Each Year 79 Number of Interventions 71 60 (in millions) 49 34 13 2008 2009 2010 2011 2012 2013E Source: CVS Caremark data 6
Slide 7: At The Same Time, We Have Significantly Improved Our Productivity
… At The Same Time, We Have Significantly Improved Our Productivity Labor Required To Fill Each Key Drivers Of Productivity Prescription Has Declined Enhancements ! Workflow redesign -12% ! Enhanced demand modeling ! More fully leveraging fixed capacity ! Full integration of 2008 2013E clinical inte
Slide 8: Integrated Systems And Workflow Support Consistent Delivery Of Effective Clinical Care
Integrated Systems And Workflow Support Consistent Delivery Of Effective Clinical Care Our Systems … Track Support Identify Optimize 8
Slide 9: Integrated Systems And Workflow Support Consistent Delivery Of Effective Clinical Care
Integrated Systems And Workflow Support Consistent Delivery Of Effective Clinical Care Our Systems … Example: Gap In Care Track ! Patients missing key Support Identify therapies according to who needs what intervention medical guidelines Optimize 9
Slide 10: Integrated Systems And Workflow Support Consistent Delivery Of Effective Clinical Care
Integrated Systems And Workflow Support Consistent Delivery Of Effective Clinical Care Our Systems … Example: Gap In Care Identify ! Prompts while patient Track Optimize is in store for face-to- how intervention delivered face consultation Support 10
Slide 11: Integrated Systems And Workflow Support Consistent Delivery Of Effective Clinical Care
Integrated Systems And Workflow Support Consistent Delivery Of Effective Clinical Care Our Systems … Example: Gap In Care Optimize ! Key clinical information about the missing therapy for the patient Identify Support clinical information and follow-up ! Supports follow-up with physician and patient
Slide 12: Integrated Systems And Workflow Support Consistent Delivery Of Effective Clinical Care
Integrated Systems And Workflow Support Consistent Delivery Of Effective Clinical Care Our Systems … Example: Gap In Care Support ! Activity metric: Did consultation occur? Optimize Track key outcomes ! Influence metric: Clinical outcome Identify 12
Slide 13: Establishing Clinical Leadership Has Required Cultural Change, Not Just Systems
Establishing Clinical Leadership Has Required Cultural Change … Not Just Systems Metrics Systems and and Reporting Process Culture of Clinical Excellence Impact People and and Influence Capabilities 13
Slide 14: Result: CVS/pharmacy Delivers Best-in-class Adherence Results
Result: CVS/pharmacy Delivers Best-in-class Adherence Results Medication Possession Ratio CVS Top 3 Retail 83 81 79 74 73 70 Diabetes Therapy Cholesterol Therapy Blood Pressure Therapy Source: CVS Caremark Analytics. 14
Slide 15: These Results Lead To Better Health Outcomes And Lower Health Care Costs
These Results Lead To Better Health Outcomes And Lower Health Care Costs Annually, These Results Lead To… 83 ! ~20,000 fewer heart attacks 74 ! ~5,000 fewer strokes ! ~3,000 saved lives Blood Pressure Therapy Medication non-adherence costs the U.S. health care system $290 billion annually Notes: 1.
Slide 16: CVS Caremark And Our Stakeholders Benefit As Clinical Outcomes Are Achieved
CVS Caremark And Our Stakeholders Benefit As Clinical Outcomes Are Achieved Key PBM Health Patients Providers Stakeholders Clients Plans ! Improved health outcomes – Longer lives and a healthier population How Stakeholders – Better provider ratings Benefit ! Lower cost of care ! New and renewed rela
Slide 17: Key Proof Point: Growing Health Plan Partnerships
Key Proof Point: Growing Health Plan Partnerships … As Health Partnerships Plans Leverage Are Growing … Our Reach And Expertise 17
Slide 18: Agenda
Agenda ! Significantly outperforming our competitors ! Best-in-class clinical and adherence programs are a key driver of our growth ! Advancing to next generation of clinical programs … with a focus on adherence 18
Slide 19: Our Next Generation Of Adherence Programs Will Be Even More Personalized
Our Next Generation Of Adherence Programs Will Be Even More Personalized To Each Patient Expanded Capabilities Enhanced Targeting 12 9 3 6 Increased Integration External Connectivity 19
Slide 20: Unlocking Adherence With Ability & Agility
Unlocking Adherence With Ability & Agility ! Our pharmacy teams are on the frontlines of health care and making a difference every day ! Our unique assets create a sustainable advantage in the provision of clinical care ! We are building on this foundation to further differentiate and drive value !