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Overview Of CVS Health Corporation

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CVS Health Corporation is a business in the healthcare industry that is the leading pharmacy benefits manager of the nation and is composed of more than 9,000 retail locations, and more than 1,100 walk-in medical clinics. The goal of the company is to improve access to medical care by lowering the costs of services and prescriptions, in order to increase satisfaction between customers and providers. The corporation uses a consumer-centric strategy to stand out from its competitors and thrive for long-term growth that will generate profits for all of its shareholders. For 2022, CVS had an accounts receivable turnover ratio of 12.86. A high value like CVS’s means that the company is turning accounts receivables into cash at a faster rate than …show more content…

The acquisition increases the range of patients that the corporation can attend to. Moreover, Oak Street Health’s patient growth was already increasingly high, and with CVS acquiring it, the revenue will more than likely increase. Unfortunately, CVS was recently sued by the California State Government for failing to oversee the dispensing of opioids at its pharmacies. To settle the issue, a deal was finalized between the government and CVS, in which they would have to pay $5 billion dollars over the next 10 years. CVS expensed the deal in 2022, which is why its net income value was significantly smaller than the previous year. A major strength of CVS is the high revenue of the company. For the year 2022, CVS had a revenue of $332.4 billion dollars. The variety of services the company has to offer, as well as its retail products, is the main reason that they have outstanding revenue. Not only that, but the acquisition of different companies has also led them into one of the leading companies in the healthcare industry in terms of …show more content…

The federal government funds a large part of the services provided by CVS because of their coverage for Medicare and Medicaid. Government funding is a fluctuating value that changes depending on the President’s decisions to distribute the national budget. Sadly, CVS cannot take independent action and fund itself at these locations. Instead, it relies on the financial help of the government to provide these services. This is crucial since Medicare and Medicaid services are a large part of their annual revenue. If a dramatic decrease in funding were to occur, then CVS would be losing an extreme amount of revenue, which would result in a smaller profit for

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o Ability to innovate o Distribution o Able to provide health and wellness service o 24/7 Stores o Drive Through CVS Health (Stock Symbol: NYSE: CVS) • Market Share: 23.8% • Core Competencies: o Dedication to their mission o Innovation o Customer Excellence (ExtraCare rewards program) o Multiple distribution centers o Strong supplier relationships o First to market products o Quality brand name products at reasonable prices

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CVS Health is one of the many competitors in the pharmacy retail industry with a focus on retail stores and health clinics within their stores. Currently ranked #10 on the Fortune 500 list (Fortune), CVS Health has over 7,800 retail drugstores throughout the states and Puerto Rico as well as in Brazil, 1000 Minute Clinics, and over 1.7 billion prescriptions filled/managed annually with over 217,000 employees (CVS Health). CVS Health has one of the most successful loyalty programs in all of the U.S. The ExtraCare loyalty program has over 70 million card members. The loyalty program is so effective in the sense that it is tailored to the individuals based on their purchase history.

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Executive Summary CVS Caremark is the nation’s second largest Pharmacy. CVS is also a leading supplier in food, drinks, and other convenience items. CVS has a lot of competition, but no one as big as Walgreens which is the largest Pharmacy in the nation. Another big competitor is Rite-Aid. To stay competitive and to maintain dominance in their field CVS uses strategies of innovative and growth.

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