About Advance Paradigm Mail Services, Inc
CVS Health Corp. is a leading pharmacy benefits manager with nearly 92 million plan members as well as the nation's largest drugstore chain (topping Walgreens). It runs more than 9,900 retail and specialty drugstores. In addition to its standalone pharmacy operations, the company operates CVS locations inside Target stores and runs a prescription management company, Caremark Pharmacy Services. The company also offers walk-in health services through its retail network of MinuteClinics that are located in around 1,100 CVS stores. In late 2018 CVS acquired health insurer Aetna in a $70 billion megadeal, which adds traditional health insurance plans serving some 38 million people to its operations.
CVS Health operates through three main segments: Pharmacy Services, Retail/LTC (long-term care), and Health Care Benefits.
Pharmacy Services, which accounts for around 60% of sales, is the company's pharmacy benefits management (PBM) division. It dispenses drugs through some two dozen retail specialty pharmacy stores, about 20 specialty mail order pharmacies, and mail order dispensing pharmacies. It also operates around 90 medical branches, most of which are ambulatory infusion sites, but also include specialist infusion and enteral service facilities. Its other offerings include plan design and administration, formulary management, discounted drug purchase arrangements, and a slew of other services.
CVS's Retail/LTC segment (more than 35% of sales) operates around 9,900 pharmacies (including some 1,700 in Target stores), as well as 1,100 MinuteClinic locations, long-term care pharmacy operations, and online operations. The pharmacy accounts for more than two-thirds of sales in this segment, while "front store" retail merchandise accounts for the rest. CVS' MinuteClinics are staffed by nurse practitioners and physician assistants who treat minor conditions, perform health screenings, and deliver vaccinations; some locations also treat chronic conditions.
The late 2018 purchase of Aetna created the Health Care Benefits segment. It is one of the nation's leading diversified health care benefits providers, serving some 38 million people. The segment offers a broad range of traditional health insurance products and related services.
CVS retail locations, drugstores, and clinics are located in 50 US states, the District of Columbia, Brazil, and Puerto Rico. MinuteClinics are located in about 1,100 store locations across 30-plus states and Washington, DC.
Based in Rhode Island, CVS Health also has offices in Arizona, Illinois, Ohio, Pennsylvania, Texas, and Brazil.
Sales and Marketing
CVS Health's pharmacy services clients include employers, insurance companies, unions, and other health care plan sponsors. The segment makes direct sales of its prescription drugs through its mail service dispensing pharmacies. It also sells indirectly through its retail pharmacy network.
Prior to its acquisition, Aetna was a major customer of the company's, accounting for about 10% of 2018 sales.
Thanks to aggressive store openings and acquisitions, CVS Health has seen solid revenue growth over the past five years with sales up 40% since 2014. Net income had been growing steadily during that time until one-time charges hit the bottom line in 2018.
In 2018 the company reported revenue of $194.6 billion, up 5% from the prior year. Revenue from premiums contributed the most to growth, jumping 130% year-over-year because of the Aetna purchase. Product revenue also grew in both the pharmacy and retail segments.
Net income that year fell into the red, dropping to -$594 million from $6.6 billion in 2017. Results were hurt primarily by goodwill impairment charges of $6.1 billion related to the LTC reporting unit.
Cash at the end of 2018 was $4.3 billion, an increase of $2.4 billion from the prior year. Cash from operations contributed $8.9 billion to the coffers, while investing activities used $43.3 billion, mainly for the Aetna acquisition. Financing activities added another $36.8 billion as a result of proceeds from issuance of long-term debt. CVS's long-term debt more than tripled in 2018 to $71.4 billion.
CVS Health wants to lead the transformation of the consumer health system in the US, which means continuing its own transformation -- a transformation that was accelerated by the late 2018 purchase of health insurance giant Aetna. With such a breadth of products and services, the company aims to create a more personalized, innovative portfolio that will attract new customers and change how health care works for patients.
A primary early focus, however, is on efficiently integrating the Aetna operations to realize cost savings, which are estimated to be $300 million-$350 million in 2019 and $800 million in 2020. Along with the integration, CVS is focused on modernizing its enterprise function and building a technology infrastructure to support complex data deployment across the entire organization.
In early 2019 CVS introduced its first three HealthHUB locations at CVS Pharmacy stores in Houston, Texas. HealthHUBs offer a broader range of health care services, new product categories, digital tools and on-demand health kiosks, health advice, and personalized care. More than a fifth of the store is dedicated to health services, including new durable medical equipment (DME) and supplies and new product and service combinations for sleep apnea and diabetes. The company plans for additional HealthHUB openings throughout 2019, with a goal of some 1,500 locations by the end of 2021.
Mergers and Acquisitions
At the end of 2018 CVS acquired healthcare insurer Aetna for $70 billion. The deal created a new giant in the prescription drugs industry and is seen as a defensive move with players such as Amazon eyeing a move into the prescription drug space.
Brothers Stanley and Sid Goldstein, who ran health and beauty products distributor Mark Steven, branched out into retail in 1963 when they opened up their first Consumer Value Store in Lowell, Massachusetts, with partner Ralph Hoagland. The chain grew rapidly, amassing 17 stores by the end of 1964 (the year the CVS name was first used) and 40 by 1969.
In 1996 CVS's parent company, named Melville Corporation, restructured. As a result, CVS Corporation became a standalone company trading on the NYSE. Its grew quickly through acquisitions.
CVS Corporation purchased pharmacy benefits manager Caremark Rx in 2007 and changed its name to CVS Caremark Corporation. It changed its name to CVS Health in 2014 to illustrate its broader focus on health.
Health insurer Aetna was acquired by CVS Health in late 2018.
545 E JOHN CARPENTER FWY STE 1570
Irving, TX 75062-3931
Phone: 1 (972) 830-6199
Employer Type: Privately Owned
Employees (This Location): 300
Employees (All Locations): 300