Rite Aid appoints new chief communications officer
CAMP HILL, Pa. — Rite Aid has appointed Susan Henderson as SVP and chief communications officer to replace Karen Rugen, who retired last month, the retail pharmacy chain said Monday.
Henderson will be responsible for all aspects of corporate communications, including media relations, financial communications, issues management, associate and supplier communications and the company’s charity initiatives, reporting to president and CEO John Standley.
"Susan is a seasoned communications and public affairs professional who brings extensive consumer products and retail experience to Rite Aid," Standley said. "She is a proven leader in her own discipline and will be a valuable asset to us as an integral member of the management team focused on delivering long-term sustainable growth for our company."
Henderson, who has more than 25 years of experience, previously worked for Chicago-based strategy execution and employment engagement firm Gagen MacDonald; before that, she was VP communications for Harley-Davidson. She has also worked for the Wm. Wrigley Jr. Co. in Chicago, Kohl’s Department Stores and the Miller Brewing Co.
MinuteClinic’s 10 millionth patient visit milestone speaks volumes
The news that MinuteClinic has surpassed 10 million patient visits is important because the pace at which these milestones are occurring speaks volumes to the increased patient acceptance.
(THE NEWS: MinuteClinic surpasses 10 millionth patient visit mark. For the full story, click here.)
As reported by Drug Store News, the retail clinic operator recently saw its 10 millionth patient since opening its doors in 2000. This is on top of the fact that MinuteClinic, as well as other clinic operators like Take Care Health Systems, continues to broaden its reach through strategic clinical affiliations with various health systems throughout the country.
The news came just as hundreds of retail health professionals gathered in Orlando, Fla., for the fourth annual Retail Clinician Education Congress. The three-day event, which took place during National Convenient Care Clinic Week, served as a platform where retail health professionals could network and receive exclusive accreditation.
It also should be noted that in CVS Caremark’s Aug. 4 conference call to discuss second-quarter results, Larry Merlo, president and CEO of CVS Caremark, told analysts that the company’s MinuteClinic business experienced a 28% increase in revenues during the second quarter and is on track to break even by the end of this year.
The clinic operator also is on track to open 100 new locations annually for the next five years. By 2015, it expects to operate more than 1,000 clinics.
Again, the pace at which these milestones are occurring clearly speaks volumes to the increased patient acceptance of retail-based health clinics. As the industry kicks into its next major growth phase, expect the next patient milestone to come quickly.
ESI-Medco not a done deal
So, who’s afraid of a bigger, badder Express Scripts-Medco? Apparently not its competitors.
CVS Caremark president and CEO Larry Merlo isn’t worried about a combined ESI-Medco. “Assuming that the proposed transaction is completed, I am more confident than ever that CVS Caremark can and will effectively compete in this vibrant industry,” Merlo said to open his company’s Aug. 4 earnings call with analysts.
(THE NEWS: Merlo: CVS Caremark positioned to ‘effectively compete’ in PBM industry. For the full story, click here.)
CVS Caremark’s “suite of assets uniquely positions us to assist payers in controlling costs,” he added, “while enhancing member access and improving health outcomes. With the evolution of U.S. health care to more consumer-directed care, our multiple consumer touch points make us best positioned to promote cost-effective and healthy behaviors. And the success that we are having in both the 2011 and 2012 selling season clearly demonstrates that our model is resonating with payers.”
As Drug Store News has noted before, it could be almost a year from now before antitrust regulators give a green light to the deal — IF they ever do, that is. Factor in even just a minimum of six months for the two companies to come together, and it’s 18 months or more before the combined ESI-Medco could get its legs underneath itself by some estimates. That’s at least another PBM selling season away. And CVS Caremark isn’t the only one of ESI or Medco’s competitors to see an upside in that.
“The way I look at it, they’re going to take 18 months to clear the deck on the coming together of those organizations,” SXC Health Solutions chairman and CEO Mark Thierer told analysts during his company’s second quarter earnings call. “What they’ve done is they’ve effectively just short of doubled their mail-order footprint .… That’s one weapon in the arsenal of how you win in this marketplace. But what’s happening is sophisticated buyers [are] looking at total cost — they’re looking at the best channel for distribution to their members, and candidly, some of the mail-order leverage that existed in the years leading up to now has been arbitrage and competed away.”
And should the deal go through, Thierer said he still isn’t worried. “This merger creates significant opportunity for SXC to continue to offer our differentiated model to clients who prefer a more flexible, customized solution,” he noted at the top of the Aug. 4 call.
And as has been widely reported, Walgreens — which no longer competes in the PBM market on any level, having sold its business to Catalyst Health earlier this year — is maintaining its hard line against ESI, having backed out of its network weeks before this all started. Just one day prior to the announcement of the deal, Walgreens president of pharmacy, health and wellness Kermit Crawford made a direct appeal to plan sponsors and benefit consultants to either “select a PBM that includes Walgreens” or consider “direct arrangements with plans currently using Express Scripts, to the extent permitted by their contracts.” The July 21 letter also included an attached “template agreement that can be used to implement such direct arrangements where permitted,” for consideration.
But that doesn’t mean every stakeholder out there is walking around with a puffed up chest, just daring the deal to close.
Pharma companies will pay now to make sure they don’t get nickled and dimed later. And, then there’s retail pharmacy providers, groups including the National Association of Chain Drug Stores, the National Community Pharmacists Association and the Independent Specialty Pharmacy Coalition have all written letters to the FTC, officially voicing their opposition to the deal.
According to estimates, the new company would control about 40% of retail prescriptions processed, and almost half of the U.S. mail order pharmacy business.
But that’s not why the FTC might block the deal. “The real antitrust questions for the FTC will derive from potential market power issues facing customers of a PBM — the plan sponsors or third-party payers,” pharmacy economics and channel management consultant Adam Fein noted in his July 26 blog Drug Channels. “The key question: Will competition remain strong enough to ensure that a portion of any cost savings (from bargaining power or efficiencies) get passed through to plan sponsors?”
Fein noted, “complaints of ‘monopoly power’ are misguided,” adding that the combined ESI-Medco would not be a case of a monopoly, but rather an “oligopsony — a market in which there are many sellers but few buyers.”
Whatever you call it, it’s far from a slam-dunk. According to an online poll of 371 DrugStoreNews.com readers (as of Aug. 5), 56% said they expected the FTC to kibosh the ESI-Medco union.