News

Report: CVS Caremark to contribute billions to Michigan economy

BY Antoinette Alexander

WOONSOCKET, R.I. — CVS Caremark released on Thursday a report showing that the company’s Michigan operations directly and indirectly contributed more than $520 million to the state’s gross domestic product in 2011 and, over the next 10 years, is projected to grow into the billions.

According to the findings of the study, which Anderson Economic Group conducted for CVS Caremark, the company’s Michigan operations directly and indirectly contributed more than $520 million to the state’s GDP in 2011 and supported more than 8,000 jobs, which resulted in $283 million in labor income. The company’s operations also resulted in $106 million in state and local taxes.

Over the next 10 years, the study found that CVS Caremark’s contribution to Michigan’s GDP is projected to be approximately $7 billion, assuming its growth matches the average annual growth for the national economy, which is projected by the Congressional Budget Office to be 4.7%. However, if CVS Caremark’s growth over the next 10 years matches its historical growth, its contribution over the next 10 years would increase to approximately $15 billion, the Anderson study projected.

"We are committed to Michigan and are proud of our positive impact on the state’s economy," stated CVS Caremark president and CEO Larry Merlo. "The results of this study are further evidence that as we expand our operations, our present and future colleagues in Michigan will be instrumental in our quest to be a pharmacy innovation company that is reinventing pharmacy for better health."

CVS Caremark maintains an extensive operational footprint in Michigan. These operations include a distribution center totaling 640,000 sq. ft., 245 CVS/pharmacy stores and 10 MinuteClinics. The state also is home to a Specialty Mail Order Pharmacy. These operations directly employ nearly 5,300 people.

The industries most impacted by CVS Caremark expenditures are service industries, with finance, real estate and professional and business services accounting for nearly half of the value added and the earnings that are caused indirectly by CVS Caremark expenditures.

The economic scope of CVS Caremark was measured using four metrics: employment, labor income, taxes and value added. For each of these measures, the direct, indirect and induced impacts are calculated to quantify CVS Caremark’s total contribution.

In related news, recent research conducted by CVS Caremark also evaluated the economic impact the issue of medication adherence has on all 50 states, including Michigan. The state received bronze status, ranking relatively high for use of generic medications, in the middle for prescriptions delivered by mail order and relatively low for first-fill persistency rate, with 39% of patients who have chronic disease in the state not refilling their prescription after the first fill.

To read the complete report, "Economic Benefits Study: Contributions of CVS Caremark to Michigan’s Economy," and to view Michigan’s medication adherence statistics, click here.
 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

News

MinuteClinic, Atlantic Health System form clinical affiliation

BY Antoinette Alexander

WOONSOCKET, R.I., and MORRISTOWN, N.J. — CVS Caremark’s MinuteClinic has formed a clinical affiliation with Atlantic Health System, one of the largest nonprofit healthcare systems in New Jersey — comprised of Morristown Medical Center, Goryeb Children’s Hospital, Overlook Medical Center in Summit, N.J., and Newton Medical Center — to enhance access to healthcare services in northern and central New Jersey.

The agreement includes nine MinuteClinic walk-in medical clinics inside select CVS/pharmacy stores in Morris, Somerset, Sussex and Union counties and parts of Essex county.

Under the agreement, Atlantic Health System physicians will serve as medical directors for MinuteClinic locations in Northern and Central New Jersey. In addition, MinuteClinic and Atlantic Health System will collaborate on patient education and disease management initiatives and will inform patients of the services each offers. Atlantic Health System will accept patients who need a level of care that is not provided at MinuteClinic. Signage at MinuteClinic locations will inform patients that each site has a clinical affiliation with Atlantic Health System.

"Our affiliation with Atlantic Health System will help MinuteClinic make the best use of our clinics in Northern and Central New Jersey to offer better access to high quality health care services and to lower costs for patients and employers," said Andrew Sussman, president of MinuteClinic and SVP/associate chief medical officer for CVS Caremark. "We look forward to having Atlantic Health System’s physicians collaborate with our practitioners to provide quality oversight, teaching and back-up so we can provide the best care at the lowest overall cost."

MinuteClinic and Atlantic Health System will begin to work toward fully integrating electronic medical record systems to streamline communication around all aspects of each individual’s care. With patient permission, MinuteClinic will electronically share medical histories and visit summaries with other Atlantic Health System locations in Northern and Central New Jersey. In the meantime, MinuteClinic will continue its standard practice of sending patient visit summaries to primary care providers via fax or mail, typically within 24 hours.


Interested in this topic? Sign up for our weekly Collaborative Care e-newsletter.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

News

Great cause supported by next step in communication

BY Michael Johnsen

WHAT IT MEANS AND WHY IT’S IMPORTANT — The Retail Employees with Disabilities Initiative certainly is a noble cause, but more than that, this is a prime example of Walgreens’ active pursuit of an experience with its audience through the mediums that that audience chooses — in this case, Twitter. It represents a new paradigm in marketing as drug retailers and others swap a consumer reach and brand identity proposition for one of engagement and presence.

(THE NEWS: Walgreens hosts live Twitter chat around its new REDI program. For the full story, click here)

That doesn’t mean reach or identity have become passé, necessarily. There’s still a need to advertise to the masses and establish that traffic-driving raison d’être. But it does mean that’s no longer good enough. Today’s marketer needs to establish a humanized presence beyond the store clerk or cashier — a humanized presence that actively engages consumers one-on-one across each of the social media platforms.

That becomes most apparent across initiatives like Walgreens’ REDI, which is a cause around which people get extremely passionate. It’s a passion that extends well beyond those persons with disabilities, the benefactors of an initiative like this, and includes the advocates and family members for that under-employed, under-appreciated group of workers.

So it can’t hurt that that universe of passionate advocates now can identify with @WAG_Deb, the Twitter account for Deb Russell, who serves as Walgreens’ manager of outreach and employee services. Now those advocates can identify someone at Walgreens who shares their passion.

It’s not just happening with Walgreens. It’s not even just happening at retail. Establishing that engagement and presence is becoming more and more a quintessential aspect as to how a reader engages a news organization, in our case Drug Store News (or DSN in Twitter-ized shorthand).

If you don’t already, follow DSN on Twitter (@DrugStoreNews) and make sure you get the most important news in our industry as it happens. And if you don’t tweet, that’s OK, because like Walgreens, DSN also is on Facebook where we cater more to consumers with new product news and LinkedIn where we keep executives abreast to the latest news and dealings in the retail pharmacy space.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES