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Cvs Health Corporation (NYSE: CVS) |
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Description of Cvs Health's Business Segments
CVS Health Corporation is a diversified healthcare company operating through various segments, providing a wide array of products and services designed to enhance overall health and wellness. Below is an extensive overview of CVS Healths offerings, focusing particularly on their Pharmacy Benefit Management (PBM) services and broader segments.
Pharmacy Benefit Management (PBM) Services
CVS Health operates one of the largest PBM services in the United States, which encompass various critical functions aimed at managing prescription drug costs and ensuring efficient healthcare delivery. Here are the key components of their PBM services:
Plan Design and Administration
CVS Health aids clients, such as employers and health plans, in designing pharmacy benefit plans that promote safe and effective medication use while minimizing overall costs. This involves:
- Customizing Benefit Plans: Creating tailored plans that encourage the use of affordable yet clinically suitable medications.
- Cost Management: Implementing strategies to minimize client expenditures, including promoting generic drug use.
- Monitoring and Support: Conducting ongoing evaluations of the plans effectiveness through regular communications and a formalized annual review process.
Formulary Management
The company employs a specialized Pharmacy and Therapeutics Committee composed of healthcare professionals who evaluate and select drugs based on safety, efficacy, and cost-effectiveness. Key features include:
- Independent Review Process: Continuous assessment of medications on the formulary to ensure quality and accessibility.
- Clinical Support: Regular updates and recommendations for clients' drug lists to optimize therapy options for patients.
Discounted Drug Purchase Arrangements
CVS Health negotiates arrangements with pharmaceutical manufacturers to secure discounted pricing on prescription drugs. These agreements involve:
- Volume Discounts and Rebates: Securing lower prices based on the volume of drugs purchased and potential rebates.
- Cost Reductions: Direct discounts applied at the time of drug acquisition, benefiting clients and pharmacies alike.
Medicare Part D Services
CVS Health provides comprehensive services for Medicare Part D, which integrates prescription drug coverage into Medicare. These services include:
- PDP Administration: Operations through SilverScript, a CMS-approved prescription drug plan, providing essential medication coverage for eligible individuals.
- Retiree Drug Subsidy Support: Assisting employers and unions in obtaining subsidies to lower costs associated with retiree drug coverage.
Mail Order Pharmacy
CVS Health operates multiple mail service pharmacies, primarily serving members requiring maintenance medications. This service emphasizes:
- Convenient Prescription Fulfillment: Utilization of various communication channels for prescription submission (mail, phone, online).
- Quality Assurance: Pharmacists conduct thorough reviews of prescriptions to ensure accuracy, safety, and cost efficiency, and are accredited by URAC.
Specialty Pharmacy
Specialty pharmacies cater to patients needing high-cost and complex therapies. Features include:
- Accredited Facilities: Ensuring high standards of care through accreditation by recognized organizations like the Joint Commission and URAC.
- Comprehensive Services: Focus on managing therapies for chronic and rare diseases, including infusion services via Coram, enhancing patient support and treatment efficacy.
Retail Pharmacy Segment
CVS Health also operates an extensive retail pharmacy network that significantly enhances its service provision capabilities:
Retail Drugstores
With nearly 68,000 retail locations, CVS Health is a major player in the U.S. pharmaceutical market, operating under well-known brands such as CVS/pharmacy, Longs Drugs, and Drogaria Onofre. Features of this segment include:
- Diverse Product Offerings: Retail stores provide a comprehensive selection of prescription medications, over-the-counter drugs, personal care products, beauty items, and general merchandise (front storeproducts).
- Strategic Market Coverage: Presence in 95 of the top 100 U.S. drugstore markets, with significant market share'ranking first or second in 86 of those markets.
- Store Formats: Retail locations vary in size from approximately 5,000 to 30,000 square feet, with modern designs often including amenities like drive-thru pharmacies.
Clinical Services and Disease Management Programs
CVS Health emphasizes clinical services as part of a holistic approach to patient care:
- Medication Management: Programs that ensure patients adhere to their medication regimens and reduce adverse events.
- Disease Management: Targeted programs for complex conditions, supported by advanced clinical protocols, to optimize patient outcomes.
The combination of PBM services, retail pharmacies, and clinical programs allows CVS Health to provide integrated healthcare solutions, enhancing their clients and patients health outcomes while controlling costs in an increasingly complex healthcare landscape. Through their wide-ranging services, CVS Health aims to improve adherence to treatment plans, manage expensive drug therapies, and foster better health amongst their members.
Composition of Cvs Health Corporation Revenues by
Segments |
| |
| Pharmacy |
|
 57.28 % |
of total Revenue |
| Front Store |
|
5.44 % |
of total Revenue |
| Premiums |
|
32.41 % |
of total Revenue |
| Other |
|
4.29 % |
of total Revenue |
| Health Care Benefits |
|
34.58 % |
of total Revenue |
| Health Care Benefits Premiums |
|
32.4 % |
of total Revenue |
| Health Care Benefits Other |
|
1.74 % |
of total Revenue |
| Health Services |
|
46.24 % |
of total Revenue |
| Health Services Pharmacy network |
|
25.29 % |
of total Revenue |
| Health Services Mail specialty |
|
18.04 % |
of total Revenue |
| Health Services Other |
|
2.91 % |
of total Revenue |
| Health Services Pharmacy |
|
43.33 % |
of total Revenue |
| Pharmacy Consumer Wellness |
|
33.98 % |
of total Revenue |
| Pharmacy Consumer Wellness Pharmacy |
|
27.94 % |
of total Revenue |
| Pharmacy Consumer Wellness Front Store |
|
5.44 % |
of total Revenue |
| Pharmacy Consumer Wellness Other |
|
0.59 % |
of total Revenue |
| Corporate Other Corporate Other |
|
0.15 % |
of total Revenue |
| Corporate Other Corporate Other Premiums |
|
0.01 % |
of total Revenue |
| Corporate Other Corporate Other Other |
|
0 % |
of total Revenue |
| InterEliminations |
|
-14.95 % |
of total Revenue |
| InterEliminations Pharmacy |
|
-14 % |
of total Revenue |
| InterEliminations Other |
|
-0.95 % |
of total Revenue |
| InterEliminations Health Care Benefits |
|
0.02 % |
of total Revenue |
| InterEliminations Health Services |
|
3.5 % |
of total Revenue |
| InterEliminations Pharmacy Consumer Wellness |
|
11.43 % |
of total Revenue |
Q3 three months ended (Sep 30 2024)
|
| Revenues by Business Segments |
Revenues
(in millions $) |
%
(of total Revenues) |
| Pharmacy |
54,659.00 |
57.28 % |
| Front Store |
5,196.00 |
5.44 % |
| Premiums |
30,925.00 |
32.41 % |
| Other |
4,098.00 |
4.29 % |
| Health Care Benefits |
32,996.00 |
34.58 % |
| Health Care Benefits Premiums |
30,914.00 |
32.4 % |
| Health Care Benefits Other |
1,659.00 |
1.74 % |
| Health Services |
44,129.00 |
46.24 % |
| Health Services Pharmacy network |
24,136.00 |
25.29 % |
| Health Services Mail specialty |
17,214.00 |
18.04 % |
| Health Services Other |
2,780.00 |
2.91 % |
| Health Services Pharmacy |
41,350.00 |
43.33 % |
| Pharmacy Consumer Wellness |
32,423.00 |
33.98 % |
| Pharmacy Consumer Wellness Pharmacy |
26,666.00 |
27.94 % |
| Pharmacy Consumer Wellness Front Store |
5,196.00 |
5.44 % |
| Pharmacy Consumer Wellness Other |
561.00 |
0.59 % |
| Corporate Other Corporate Other |
142.00 |
0.15 % |
| Corporate Other Corporate Other Premiums |
11.00 |
0.01 % |
| Corporate Other Corporate Other Other |
3.00 |
0 % |
| InterEliminations |
-14,262.00 |
-14.95 % |
| InterEliminations Pharmacy |
-13,357.00 |
-14 % |
| InterEliminations Other |
-905.00 |
-0.95 % |
| InterEliminations Health Care Benefits |
18.00 |
0.02 % |
| InterEliminations Health Services |
3,336.00 |
3.5 % |
| InterEliminations Pharmacy Consumer Wellness |
10,908.00 |
11.43 % |
| Total |
95,428.00 |
100 % |
Q3 three months ended (Sep 30 2024)
|
| Revenue Growth rates by Segment |
Y/Y Revenue
% |
Q/Q Revenue
% |
| Pharmacy |
-2.74 % |
7.22 % |
| Front Store |
-3.26 % |
-1.61 % |
| Premiums |
25.42 % |
0.84 % |
| Other |
25.67 % |
4.75 % |
| Health Care Benefits |
25.48 % |
1.6 % |
| Health Care Benefits Premiums |
25.44 % |
- |
| Health Care Benefits Other |
13.32 % |
- |
| Health Services |
-5.89 % |
4.64 % |
| Health Services Pharmacy network |
-13.74 % |
- |
| Health Services Mail specialty |
1.24 % |
- |
| Health Services Other |
45.86 % |
- |
| Health Services Pharmacy |
-8.08 % |
- |
| Pharmacy Consumer Wellness |
12.3 % |
- |
| Pharmacy Consumer Wellness Pharmacy |
16.06 % |
- |
| Pharmacy Consumer Wellness Front Store |
-3.26 % |
- |
| Pharmacy Consumer Wellness Other |
6.65 % |
- |
| Corporate Other Corporate Other |
35.24 % |
- |
| Corporate Other Corporate Other Premiums |
-8.33 % |
- |
| Corporate Other Corporate Other Other |
200 % |
- |
| InterEliminations |
- |
- |
| InterEliminations Pharmacy |
- |
- |
| InterEliminations Other |
- |
- |
| InterEliminations Health Care Benefits |
-10 % |
- |
| InterEliminations Health Services |
18 % |
- |
| InterEliminations Pharmacy Consumer Wellness |
14.18 % |
- |
| Total |
- |
4.6 % |
Q3 three months ended (Sep 30 2024)
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| Income by Business Segments |
Income
(in millions $) |
%
(Profit Margin) |
| Total |
71.00 |
0.07 % |
Q3 three months ended (Sep 30 2024)
|
| Income Growth rates by Segment |
Y/Y Income
% |
Q/Q Income
% |
| Total |
- |
- |
Annual Report on Cvs Health Corporation Divisions, Sales by Country |
| |
| Pharmacy |
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56.4 % |
of total Revenue |
| Front Store |
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5.77 % |
of total Revenue |
| Premiums |
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32.96 % |
of total Revenue |
| Other |
|
4.28 % |
of total Revenue |
| Health Care Benefits |
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35.05 % |
of total Revenue |
| Health Care Benefits Premiums |
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32.95 % |
of total Revenue |
| Health Care Benefits Other |
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1.7 % |
of total Revenue |
| Health Services |
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46.57 % |
of total Revenue |
| Health Services Pharmacy network |
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24.58 % |
of total Revenue |
| Health Services Other |
|
2.9 % |
of total Revenue |
| Health Services Pharmacy |
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43.6 % |
of total Revenue |
| Pharmacy Consumer Wellness |
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33.4 % |
of total Revenue |
| Pharmacy Consumer Wellness Pharmacy |
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27.01 % |
of total Revenue |
| Pharmacy Consumer Wellness Front Store |
|
5.77 % |
of total Revenue |
| Pharmacy Consumer Wellness Other |
|
0.61 % |
of total Revenue |
| Corporate Other Corporate Other |
|
0.12 % |
of total Revenue |
| Corporate Other Corporate Other Premiums |
|
0.01 % |
of total Revenue |
| Corporate Other Corporate Other Other |
|
0 % |
of total Revenue |
| InterEliminations |
|
-15.13 % |
of total Revenue |
| InterEliminations Pharmacy |
|
-14.2 % |
of total Revenue |
| InterEliminations Other |
|
-0.93 % |
of total Revenue |
| InterEliminations Health Care Benefits |
|
-0.02 % |
of total Revenue |
| InterEliminations Health Services |
|
-4.11 % |
of total Revenue |
| InterEliminations Pharmacy Consumer Wellness |
|
-11.01 % |
of total Revenue |
| Corporate Other |
|
0.02 % |
of total Revenue |
| Health Services Mail choice |
|
19.01 % |
of total Revenue |
Twelve months ended 2024
|
| CVS s Annual Revenue by Geography and Business Segments |
Sales
(in millions $) |
%
(of total Sales) |
| Pharmacy |
210,272.00 |
56.4 % |
| Front Store |
21,522.00 |
5.77 % |
| Premiums |
122,896.00 |
32.96 % |
| Other |
15,966.00 |
4.28 % |
| Health Care Benefits |
130,665.00 |
35.05 % |
| Health Care Benefits Premiums |
122,849.00 |
32.95 % |
| Health Care Benefits Other |
6,343.00 |
1.7 % |
| Health Services |
173,605.00 |
46.57 % |
| Health Services Pharmacy network |
91,650.00 |
24.58 % |
| Health Services Other |
10,793.00 |
2.9 % |
| Health Services Pharmacy |
162,527.00 |
43.6 % |
| Pharmacy Consumer Wellness |
124,500.00 |
33.4 % |
| Pharmacy Consumer Wellness Pharmacy |
100,687.00 |
27.01 % |
| Pharmacy Consumer Wellness Front Store |
21,522.00 |
5.77 % |
| Pharmacy Consumer Wellness Other |
2,291.00 |
0.61 % |
| Corporate Other Corporate Other |
451.00 |
0.12 % |
| Corporate Other Corporate Other Premiums |
47.00 |
0.01 % |
| Corporate Other Corporate Other Other |
9.00 |
0 % |
| InterEliminations |
-56,412.00 |
-15.13 % |
| InterEliminations Pharmacy |
-52,942.00 |
-14.2 % |
| InterEliminations Other |
-3,470.00 |
-0.93 % |
| InterEliminations Health Care Benefits |
-72.00 |
-0.02 % |
| InterEliminations Health Services |
-15,304.00 |
-4.11 % |
| InterEliminations Pharmacy Consumer Wellness |
-41,036.00 |
-11.01 % |
| Total |
372,809.00 |
100 % |
| Corporate Other |
56.00 |
0.02 % |
| Health Services Mail choice |
70,877.00 |
19.01 % |
Twelve months ended 2024
|
| CVS s Annual Income by Country and Business Segments |
Income
(in millions $) |
%
(Profit Margin) |
| Total |
4,586.00 |
1.23 % |
Twelve months ended 2024
|
| Annual Revenue and Income Growth by Country and Business Segments |
% Y/Y Sales Growth |
% Y/Y Income Growth |
| Pharmacy |
-5.9 % |
- |
| Front Store |
-4.17 % |
- |
| Premiums |
23.9 % |
- |
| Other |
38.58 % |
- |
| Health Care Benefits |
23.68 % |
- |
| Health Care Benefits Premiums |
23.91 % |
- |
| Health Care Benefits Other |
10.56 % |
- |
| Health Services |
-7.09 % |
- |
| Health Services Pharmacy network |
-18.69 % |
- |
| Health Services Other |
75.95 % |
- |
| Health Services Pharmacy |
-10.06 % |
- |
| Pharmacy Consumer Wellness |
6.63 % |
- |
| Pharmacy Consumer Wellness Pharmacy |
9.31 % |
- |
| Pharmacy Consumer Wellness Front Store |
-4.17 % |
- |
| Pharmacy Consumer Wellness Other |
4.18 % |
- |
| Corporate Other Corporate Other |
0 % |
- |
| Corporate Other Corporate Other Premiums |
-2.08 % |
- |
| Corporate Other Corporate Other Other |
0 % |
- |
| InterEliminations |
- |
- |
| InterEliminations Pharmacy |
- |
- |
| InterEliminations Other |
- |
- |
| InterEliminations Health Care Benefits |
- |
- |
| InterEliminations Health Services |
- |
- |
| InterEliminations Pharmacy Consumer Wellness |
- |
- |
| Corporate Other |
-1.75 % |
- |
| Health Services Mail choice |
4.24 % |
- |
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