...CVS Pharmacy Financial Reporting CVS Pharmacy is one of the largest pharmacy chain the in the United States. It is the second largest with more than 6,000 stores. This retail pharmacy sells a variety of items making it easy to meet customer needs. It carries a variety of products such as prescription drugs, over-the counter drugs, photo developing services, cosmetics, greeting cards, convenience foods, along with other items under the customers’ demands or needs. It also provides health services. CVS pharmacy provides more than 600-Minute Clinics for medical services and consultations. They also have a Diabetes Care Centers. These clinics are mostly located within CVS stores. In 2008 it was the largest for-Profit employer in Rhode Island. It was founded in 1963 under the name of Consumer Value Store. Stanly Goldstein and Ralph Hoagland also funded it as a discount health and beauty aid store. CVS/pharmacy is the retail division of CVS Caremark. CVS pharmacy reinvented the pharmacy to help peopled by assisting them to better health. To do so, they provided access and personalized experts for both the stores and the online services under CVS.com. CVS pharmacy has more than 26,000 pharmacists dispensing prescriptions and providing additional services. Pharmacists also provide flu vaccinations and face-to-face patient counseling. These services provided while helping to lower health care costs and improve health outcomes. CVS/pharmacy...
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...REV: OCTOBER 20, 2006 Pharmacy Service Improvement at CVS (A) Flum looked at Betses. “You told us it was bad, but this bad?” “I told you there were service issues in our pharmacies. But I have to admit, even I didn’t know the whole story.” “So what do we do about it?” “Well, we can’t have 67 solutions for the 67 problems we identified,” Roberts said. “Definitely not,” Grossi agreed. “But do you have an idea what we should do? If you erased that whiteboard and grabbed a pen, could you draw the ‘right’ flow chart for pharmacy operations?” “Actually, I think I could come pretty close. And I think my flow chart would look a lot like both of yours. I’m just not sure which parts of it would be easy to implement and which would be tricky. Mitch, you know these places better than anyone—what kinds of changes would make them really unhappy?” “Anything affecting safety. Everyone—not just the pharmacists—is a fanatic about making sure we fill prescriptions accurately and watch out for the health of our customers. So for example if we said, ‘In the interests of efficiency we want to have the system spit out fewer alerts about drug-drug interactions,’ we would get killed. The pharmacists would march us right out the front door of their stores and tell us never to come back. And I wouldn’t blame them.” Do “Got it. What else?” ________________________________________________________________________________________________________________ Professor Andrew F. McAfee prepared...
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...Introduction Walgreen Co. and CVS/Caremark are two of the largest retail drugstore chains in the United States, offering consumers a variety of basic consumer goods including household products, convenience foods, personal care, beauty care, photofinishing, and seasonal items, as well as over-the-counter and prescription medication. In addition to their well-known retail pharmacies, both companies also operate a health services health and wellness division. Within the retail pharmacy industry CVS/Caremark and Walgreens continually battle for the retail position. This document will offer an overview and basic competitive analysis of the two companies. Background Location & Type of presence (brick and mortar, or internet) According to the CVS/Caremark 2011Annaul Report, page 23; as of December 31, 2011, the CVS/Caremark Retail Pharmacy segment operated 7,327 retail drugstores with 7,271of these retail stores operating a full service pharmacy. Their stores are located in 41 states and the District of Columbia and Puerto Rico. Additionally, within these retail stores operate 657 health care clinics conducting business under the Minute Clinic name. The retail pharmacy stores operate primarily under the CVS/pharmacy or Longs Drugs names. In addition, the Pharmacy Services segment operates under the names CVS Caremark Pharmacy Services, Caremark, CVS Caremark, Care Plus CVS/pharmacy, Care Plus, and Rx America to providing pharmacy benefit management services to employers, insurance...
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...Pharmacy Service Improvement at CVS Business Seminar Case Study Bethany Odom, Katie Tewell, Kelly Snider, Brad Lowe Table of Contents Introduction…………………………………………………….3 Day-to-Day Operations Diagram……………………………….4 Drop Off………………………………………………………..5 Data Entry………………………………………………………7 Production………………………………………………………10 Quality Assurance………………………………………………12 Pick-Up…………………………………………………………12 Pharmacy Additions……………………………………………14 Our Future………………………………………………………15 Works Cited…………………………………………………….16 2 Introduction The current system in a CVS pharmacy allows customers to quickly drop off their prescriptions whenever convenient for them, the pharmacists and technicians to fill the scripts near the time the customer would like to pick them up, and customers to return to the store to pick up their medications at the specified time. However, this system creates long lines and angry customers during busy pick-up times, such as around the evening meal, when the typical work day concludes. We would like to implement a system that focuses on the day’s procedures and alters the drop-off, data entry, and production steps, therefore ideally reducing the number of problems that occur and must be resolved during the pick-up stage. With some additional changes made to the pick-up procedure, we feel CVS will be able to better their customer service and increase customer satisfaction while keeping the safety of its shoppers the company’s number one priority. The following page presents a data...
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... Group 3 I. PROBLEM STATEMENT a. What can Consumer Value Store do to improve their customer service so that customer complaint can be avoided or at least be lessened? b. How will the company be able to motivate their employees in terms of their work output? II. OBJECTIVES a) To be able to identify the problems that usually occur during the drop-off stage. b) To be able to come up with solutions that can help improve customer service. c) To determine the pros and cons of system upgrade to help minimize errors in data entry. III. STATEMENT OF FACTS a) CVS had 29.5 million pharmacy members at the start of 2000 and a revenue of $20 billion. b) In the year 2002, CVS was one of America’s largest retail drugstores, with over 4,000 stores and revenue of $24.2 billion. c) An estimated of 10.9 million infrequent customers left in 2000. d) In 2000 the company was able to attract 8.5 million new regular members e) Heavy users filled an average of 40 scripts a year and were most likely to leave because of poor service. f) Light users filled an average of 5 scripts per year. IV. ALTERNATIVE COURSE OF ACTION a) Hire part-time employees to work during the peak hours where majority of the...
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...Case Write-up #1: Pharmacy Service Improvement at CVS After reading the two articles by Ramias and Wilkins on Performance Metrics, what metrics, if any would you identify that are essential to managing the prescription fulfillment process at CVS. Ramias and Wilkens’ state that the starting point in developing metrics is to understand the expectation of the customer. Upon review of the data compiled by the PSI team, customers expect accuracy and timeliness. Therefore, most of the metrics developed below focus on measuring the two expectations and, I believe, are essential to managing the prescription fulfillment process at CVS. 1. Processing time – prescriptions filled per unit of time. A major customer complaint was time – either waiting too long in line, waiting for their prescription after the pick-up time, etc. 2. Number of prescriptions filled per day and median processing time. Again, this metric will help identify peak time periods, staffing needs, and eliminate waiting times by customers. This would also help to measure accuracy. If prescriptions are constantly wrong and the customer has to wait to correct them, the processing time will be higher than expected. 3. Hourly volume and median processing time. This metric would measure the volume of prescriptions filled per hour, the percentage of prescriptions filled in under the target number of minutes, and the median time to fill them per hour. Because heavy users cited service as their number...
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...I. Case Introduction In 2002, CVS was the one of America’s largest retail drugstores with over 4,000 stores and $24.2 billion in revenue. Over two-thirds of the company’s revenue was generated by their pharmacies. Despite the company’s size and success, the company was facing a serious issue regarding the service at their pharmacies as they had many customers who were unhappy with the service they received. To combat these problems, CVS developed a Pharmacy Service Improvement (PSI) team to evaluate and redesign pharmacy operations at CVS retail locations. II. PSI Opportunity In 2000, 7.2 million regular pharmacy customers left CVS taking with them 55 million annual prescriptions that could have increased revenue by $2.5 billion. It is estimated that if the PSI team can develop a better fulfillment operations system they could prevent 60-90% of customer defections. Additionally, through the PSI’s preliminary research they have found that 44% of heavy users switch due to the poor service they receive. The loss of heavy users is significant because they bring in continuous revenue streams In addition to simple customer happiness, through the PSI program the CVS team has the opportunity to make the people working at the CVS pharmacies happier, especially those working at the pickup window. These groups of employees must handle the continuously angry customers who are dissatisfied with their service. It is known that this job is so difficult that many of these techs...
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...-----------------------------Page 8 Conclusion & Reflection --------------------------------------------------------------------------------------Page 9 Work Cited------------------------------------------------------------------------------------------------------Page 10 INTRODUCTION Walgreens is one of the fortune 500 companies and among the fastest growing retailers in the country. Walgreens as of April 30 operated 8307 location in all 50 states including the District of Columbia, Puerto Rico and Guam. This includes 7855 drugstores, 146 more than a year ago, including 21 stores acquired over the last 12 months. The company also operates infusion and respiratory services facilities, specialty pharmacy and mail service facilities. They also have a take care health system subsidiary which manages more than 700 in-store convenient care clinics and worksite health and wellness canters. This research is based on the problem facing the company on how executive decision making in the company has caused a negative impact and low productivity level among employees due to their decision to discontinue having...
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...Week One - Homework Practice Exercises 1 1. The night shift was not necessarily safer. It might just be that there are fewer workers on the night shift. You would need to know the number of workers and the hours they are working to figure out the rate at which accidents happen. This is a problem of a missing denominator. 2. (a) There are many more Camrys on the road than Escalades (b) Because the theft rate is higher, the Escalade is more likely to get stolen. 3. They should look at the complaint rate per hundred prescriptions -- not the total number of complaints. The reason most of the complaints are for CVS pharmacy could easily be because most of the prescriptions are written from CVS pharmacies. It could turn out that CVS pharmacies are doing better than other pharmacies. Practice Exercises 2 4. (a) observational (b) Prisoners who volunteer to take these courses are more likely to be interested in being rehabilitated than the ones who don’t volunteer. The confounding factor created here is the level of prisoner motivation to be rehabilitated: it influences whether or not they take the courses and also whether or not they commit crimes to return to prison. The education program may work well, but you can’t tell from this study because of this confounding factor. (c) A better way would be to choose a random sample of inmates and divide them into "treatment" and "control" groups. You then could offer the treatment group the option of attending counseling...
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...Running head: PROJECT PROPOSAL FOR WEEK TWO Project Proposal for Week Two Tawfiq Abu-Raqabeh Argosy University/Sarasota Research methodology in Accounting B7251 Pesi Amaria, Ph.D. September 30, 2007 Project Proposal Hi Dr. Amaria: I want to work on differences between Walgreen and CVS Pharmacy store and find the following: 1- Development of Walgreen as well as CVS Pharmacy Stores and treat this independent Variable 2- Company Structure for both companies. 3- Corporation – Equity for both companies. 4- Operating Result. 5- Balance Sheet Presentation along ratio analysis According to Holmes, Langford, Welch, & Welch, (2002). The article examined several points in connection with fraud. These points were: (a) whether fraud schemes varies and depending on the attitude of Top level executives regarding controls; (b) whether discovering of such schemes varies based upon attitude; and (c) whether outcomes differ based on attitude also this article contain several dimensions as follows: victim to any fraud, fraud perpetrator, scheme characteristics, Discovering methods, subsequent investigation, several techniques used to investigate fraud, The result of fraud investigation. A four page questionnaire was used and sent to 8,000 ACFE members who were...
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...keeping the atmosphere of the business neat and clean, and conveniently making the locations available internationally. The organization’s actual plans and actions also strive for this same goal, however, there are always other factors such as whether employees are being rude to customers, the maintenance of certain locations are not being kept, or if competition was rising causing us to lose business. * They offer services in various areas and product categories. Some of these categories include Pharmacy & Health; Photo; Beauty & Personal care; Medicine & Treatments; and Vitamins & Supplements. Other categories of interest at Walgreens include Sexual Wellness; Grocery; Baby, Kids & Toys; Household; Diet & Fitness; As Seen on TV; and seasonal products. Through providing these various products and services, they will achieve success in their goal of customer satisfaction and being the leading manufacturer for these services over other businesses such as CVS Pharmacy. Walgreens intends to accomplish this goal through the same criteria while progressively advancing to the top and do this continuously each...
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...I. Introduction and Overview CVS Pharmacy is considered one of the top pharmacy nationwide chains in the country. There are more than 7,100 stores total, located in nearly every state. The stores retail medication, toiletries and sundry merchandise that is purchased by consumers such as snacks, beverages, skin care and personal care items, holiday merchandise and convenience goods. There is also an online site where products can be ordered and shipped directly to consumers. Some of the CVS pharmacies have medical services that operate out of the retail stores. A. Identify the Organization CVS recognizes the importance of establishing a culture that will have an affect on its people and their performance. The organizational development functional management at CVS realized that sharing a common vision would assist each individual in understanding what the company stands for, commit to the same vision, and then work toward supporting the mission each and every day. The vision at CVS is simple “to strive to improve the quality of human life” (CVScaremark.com, 2010). Taking a look at two of the organization’s functional goals in the Technology and Human Resource business areas, it is easy to see how CVS is an industry leader. The organizational structure or team at CVS involved in working on this issue from the HR area include the Senior Vice President of HR, Training Specialist, nd local HR managers. From organizational operations there is the technology manager, and procurement...
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...Problems of Current System • Drop Off • No one manning drop-off station • Data Entry • No refills allowed on script • DUR hard stop • Insurance problems • Production • Insufficient inventory • Pick up • • • • Unauthorized refill Script not ready Script not covered by insurance Long lines of angry customers in rush hour Process Flowchart - As Is Drop Script Pick up Invisible Line Put in slot Data Entry Hard Stop Refill DUR Dr. Call bin Ask for approval Reach Dr.? Dr. Call Back Bin Package Insurance Check Productio n QA Dr. Denial Box Recommendations • What changes do you recommend to CVS’s existing pharmacy fulfillment process? The greatest problems are occurring at the pickup, but it is not the actual pickup process that is inherently flawed. Looking earlier into the process it was thought that “nothing happened” at drop off. Change that thought and use this time to eliminate problems from occurring at pickup. At the drop off do the initial data entry, verify customer information is correct, screen out any “no refill allowed” issues, and perform the insurance check. This extra attention at drop off would allow the customer to know upfront if there are any issues that need to be addressed and be notified of the timetable for closing out the issue. The majority of the pickups occur after work but the drop-offs occur all throughout the day. Even if the drop off took more time...
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...Goldstein, Sid Goldstein, and Mark Steven in Lowell, Massachusetts, Consumer Value Store (CVS), has quickly grown to be the second largest pharmacy and convenience store with over 7,600 pharmacies and drugstores nationwide. Since the beginning, CVS has always strived to be the largest retail pharmacy-which led to the development of their growth strategy. Furthermore, CVS continually strives to “reinvent” the pharmacy and make healthy living a fundamental part of their customers’ lives. (Biesada, 2014) Initially, these strategies were influenced by the company’s mission statement and purpose. According to the CVS website, the company’s mission is to “provide expert care and innovative solutions in pharmacy and health care that are effective and easy for our customers” (CVS caremark corporation: History, 2014). Clearly, CVS is in business to provide expert care, although it would appear that not all of their individual pharmacists share the same feelings. Based on research conducted, it would appear that there is a general lack of customer service training as some pharmacists have allegedly been behaving rudely towards customers. Throughout the course of this initiative, we will be discussing the gaps that have been found and we will develop a training program that we hope will help alleviate these problems and allow CVS to fully realize their mission. Part II: Needs Assessment Pharmacy Prescription Practices As a result of organizational research, we have determined that...
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...Americans lived within five miles of a Walgreens pharmacy, and more than 6 million customers were served each day. Walgreens issued more than 800 million prescriptions annually, representing 20 percent of the U.S. market. Its online business, Walgreens.com, had almost 17 million visitors per month. Walgreens’ strategy had evolved for more than a century in business. By 2012, the company faced a number of major strategic questions, including international expansion and a changing health care environment. History of Pharmacy2 People have been trying to create remedies for illnesses and ailments since the beginning of time, but most historians credit Babylon with the first organized apothecary. This was followed by the Romans, who created a system of pathology and therapy that became standards for Western medicine for more than 1,000 years. For the most part, though, pharmacy remained a sketchy and shadowy business for centuries, practiced by (among others) witch doctors and alchemists. Advances in medicine and the Renaissance era led to more structured and scientific approaches. In 1240, German Emperor Frederick II issued a proclamation establishing the practice of pharmacy along three tenets: (1) separation of the pharmaceutical profession from the medical profession; (2) official supervision (regulation) of pharmacy; and (3) “obligation to prepare drugs reliably, according to skilled art, and in a uniform, suitable quality.” 3 Public pharmacies and university training began spreading throughout...
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