CVS Health Corporation · NYSE:CVS
CVS Health — Investor Day (December 2014)
35 slides from CVS Health's investor day presentation, Dec 16, 2014
Slide 1: Creating a More Connected Health Care System
Creating a More Connected Health Care System Troyen y Brennan,, M.D.,, M.P.H. Executive Vice President & Chief Medical Officer
Slide 2: Agenda
Agenda Our Role in the Changing Health Care System CVS/minuteclinic: Growth and Connectivity Better Outcomes through Patient Engagement Supporting Providers in the New Risk Landscape ©2014 CVS Health 2
Slide 3: Before Reform, Our System Was Disconnected
Before Reform, Our System Was Disconnected: Uncoordinated Care and Stakeholders in Silos CONSUMERS Doctor Hospital Health Plan Pharmacy System ©2014 CVS Health 3
Slide 4: New Outcomes-based Environment Demands Greater Coordination of Care and Connectivity
New Outcomes-based Environment Demands Greater Coordination of Care and Connectivity CONSUMERS Doctor Hospital Health Plan Pharmacy System All stakeholders t k h ld needd visibility i ibilit into i t consumer health h lth behaviors b h i – plus the ability to impact those behaviors ©2014 CVS Health
Slide 5: CVS Health Can Help Connect the System and Meet Patient Care Goals
CVS Health Can Help Connect the System and Meet Patient Care Goals CONSUMERS Doctor Hospital Health Plan Pharmacy System ©2014 CVS Health 5
Slide 6: Agenda
Agenda Our Role in the Changing Health Care System CVS/minuteclinic: Growth and Connectivity Better Outcomes through Patient Engagement Supporting Providers in the New Risk Landscape ©2014 CVS Health 6
Slide 7: Strong Growth for CVS/minuteclinic Continues
Strong Growth for CVS/minuteclinic Continues Net Revenue ($, millions) ~345 ~300 32% CAGR 37 2007 2008 2009 2010 2011 2012 2013 2014E 2015E ©2014 CVS Health 7
Slide 8: 2010: 454 CVS/minuteclinic Locations
2010: 454 CVS/minuteclinic Locations 454 Full-time clinics in 2010 ©2014 CVS Health 8
Slide 9: 2014: More than 960 CVS/minuteclinic Locations in 31 States and Growing
2014: More than 960 CVS/minuteclinic Locations in 31 States and Growing ç 960+ Full-time clinics in 2014 ©2014 CVS Health 9
Slide 10: 2014: More than 960 CVS/minuteclinic Locations in 31 States and Growing
2014: More than 960 CVS/minuteclinic Locations in 31 States and Growing ç Target of 1,500 locations in 2017 ©2014 CVS Health 10
Slide 11: CVS/minuteclinic is Building a Strong Brand
CVS/minuteclinic is Building a Strong Brand CVS/minuteclinic Net Promoter 2014 Net Promoter Scores Scores USAA Home Insurance 84% 84% CVS/minuteclinic 84% 82% Amazon.com 64% 80% Integrated Delivery Network 40% Medicare 27% Health Insurance Sector Avg. 17% 2012 2013 2014 Sources: 1. Press Ganey, repo
Slide 12: CVS/minuteclinic Delivers High Quality Care
CVS/minuteclinic Delivers High Quality Care % Compliance with Optimal Quality Care Performance Standards 71.9% 51.9% 49.4% CVS/minuteclinic Ambulatory Visit Emergency Department Source: Weighted average of results. “Quality of Care at Retail Clinics for 3 Commons Conditions”, Shrank, W., et. al., Am
Slide 13: CVS/minuteclinic Suite of Services
CVS/minuteclinic Suite of Services Acute Care Preventive • Diagnose, Diagnose treat and prescribe for • Access for chronic disease screenings common illnesses and vaccinations • Allows physicians to focus on more • Complete health review for risk complex patient needs assessment • After-hours Aft h
Slide 14: CVS/minuteclinic Suite of Services: Extended to Enable Better Population Management
CVS/minuteclinic Suite of Services: Extended to Enable Better Population Management Acute Care Preventive • Diagnose, Diagnose treat and prescribe for • Access for chronic disease screenings common illnesses and vaccinations • Allows physicians to focus on more • Complete health review for risk comp
Slide 15: Epic EMR: Broader Scope and Connectivity
Epic EMR: Broader Scope and Connectivity Epic Will Enable Close, Real-time 54% of U.S. Connectivity with Health Alliances population will be cared for by provider using EpicCare1 EpicCareTM Health System Patient record Alliance exchange platform Advantages Laboratory Enables Visit and and registry c
Slide 16: Agenda
Agenda Our Role in the Changing Health Care System CVS/minuteclinic: Growth and Connectivity Better Outcomes through Patient Engagement Supporting Providers in the New Risk Landscape ©2014 CVS Health 16
Slide 17: Better Pharmacy Care: Investing in Adherence Reduces Overall Costs
Better Pharmacy Care: Investing in Adherence Reduces Overall Costs Healthcare Savings from Improved Adherence (PMPY) Li id L Lipid Lowering i Di b t Diabetes Hypertension H t i Net savings: Net savings: Net savings: $2,710 $5,227 $5,047 $601 $656 $629 Added Rx Spend Medical and Productivity Savings
Slide 18: Only Half of Patients Adhere to Evidence-based Drugs Prescribed by Physicians
Only Half of Patients Adhere to Evidence-based Drugs Prescribed by Physicians Adherence is a ~$300B problem nationally ent Persistent (%) Perce Three Six Twelve Months following initiation Oral antidiabetic ARB Statin Source: Yeaw J, Benner J, et al. J Manag Care Pharm 2009;(9):728-740. Choudhry, Sh
Slide 19: Building on a Solid Foundation of Pharmacy Advisor to Engage More Patients
Building on a Solid Foundation of Pharmacy Advisor® to Engage More Patients Pharmacy Advisor® O One-on-one pharmacist h i t supportt 2011 2012-2014 2015+ • Launched for • Expansion to • Additional conditions: PBM members Cardiovascular behavioral health with diabetes conditions and rest of top 10 •
Slide 20: Improving Adherence to Maximize Stars Performance
Improving Adherence to Maximize Stars Performance % Patients with At Least 80% Adherence to Results Medications Diabetes High Blood High • Ability to impact Pressure Cholesterol 80% of overall 74% Medicare Part D 73% Star rating 70% 69% • Helped improve plan’s overall 65% Star ratings from 3 to 4 St
Slide 21: And We Are Aggressively Pursuing New Programs to Further Boost Adherence
And We Are Aggressively Pursuing New Programs to Further Boost Adherence Digital Adherence Advantage: Adherence support integrated into daily life Multi-dose Calendar and Packing Advantage: Organize dosing to reduce complexity Synchronize Rxs Ad Advantage: Fill allll medications di i with i h ffewer
Slide 22: Our Health Engagement Engine Connects Our Enterprise and Links Us to Providers and Insurers
Our Health Engagement Engine Connects Our Enterprise and Links Us to Providers and Insurers Nurse Pharmacist Provider Hospital Health Plan Health Engagement Engine Insights from clinical Medical visit records Registered Data from EMR collaborations at CVS/minuteclinic web user data CVS Health Pharma
Slide 23: Health Engagement Engine Enables More Effective Interventions to Support Patient Care Goals
Health Engagement Engine Enables More Effective Interventions to Support Patient Care Goals Health Engagement Engine ©2014 CVS Health 23 2
Slide 24: Our Solutions Can Integrate with Points of Care to Help the Patient Get Back on Track
Our Solutions Can Integrate with Points of Care to Help the Patient Get Back on Track Example: John Intervention Path to Better Health Message sent to provider Pharmacist prompted and available for Patient identified Medication at CVS/pharmacy alert upon p p patient’s Because of a reminders when pat
Slide 25: Improving Care for a Fragile Patient: CareFirst Patient
Improving Care for a Fragile Patient: CareFirst Patient (Member) Example: Mary Intervention Path to Better Health Follow-up call Refill reminder from pharmacist call from to discuss multi- pharmacist 10 dose packaging days before Patient identified Comprehensive Rx pick-up experience i nextt refill
Slide 26: Agenda
Agenda Our Role in the Changing Health Care System CVS/minuteclinic: Growth and Connectivity Better Outcomes through Patient Engagement Supporting Providers in the New Risk Landscape ©2014 CVS Health 26
Slide 27: CVS Health Can Support Health Systems Across the Payment Continuum
CVS Health Can Support Health Systems Across the Payment Continuum Sacramento, Birmingham, AL Evolving Contracting Arrangements CA Fee for FFS with Bundled Shared Shared Global Service (FFS) Pay for Payments Savings Risk Capitation Performance Our Goal: To improve pharmacy care and complement primar
Slide 28: For Insurers and Providers at Risk, Improving Pharmacy Care Creates Financial Benefits
For Insurers and Providers at Risk, Improving Pharmacy Care Creates Financial Benefits Pharmacy Care Economic Model: 100,000 Life Medicare Example ($, millions) 1,120 270 850 Total Health Annual Savings Net Cost C Care S Spendd F From Better B tt Aft Savings After S i Pharmacy Care At least 50% of t
Slide 29: Connecting with At-Risk Provider Groups to Achieve Population Health Goals
Connecting with At-Risk Provider Groups to Achieve Population Health Goals Data exchange CVS Health Doctor Group Health identifies and in shared risk model Engagement acts on patient opportunities Engine Patient i t intervention ti d data t ©2014 CVS Health 29
Slide 30: Connectivity Can Enable Coordinated Care with Health System Alliances, Preventing Readmissions
Connectivity Can Enable Coordinated Care with Health System Alliances, Preventing Readmissions Intervention Path to Better Health Continuous coordination and monitoring between provider, CVS/minuteclinic pharmacist, and case for follow-up high manager blood pressure and Bedside Patient Pharmacist Co
Slide 31: CVS Health's Readmission Prevention Solution Offers Significant Cost Savings
CVS Health’s Readmission Prevention Solution Offers Significant Cost Savings 30-day Readmission Rates Cost Reduction (%) per Targeted Patient 50% ($) 65% Reduction 23.1 Reduction 5,108 11.9 1,785 Control Intervention Control Intervention Reduction in readmission rate Readmission costs avoided Note:
Slide 32: Our Full Range of Programs Add Value for Providers
Our Full Range of Programs Add Value for Providers Better Specialty Hospital Population Pharmacy Care Management Transitions Health • Adherence • Convenient • Bedside delivery of • Targeted interventions medication medications interventions dispensing • Wellness and • Home infusion • Data analytics
Slide 33: Our Health System Alliances Demonstrate the Value of CVS Health's Unique Offering
Our Health System Alliances Demonstrate the Value of CVS Health Health’s s Unique Offering ©2014 CVS Health 33
Slide 34: Our Solutions Offer Joint Value for the Health Systems and CVS Health
Our Solutions Offer Joint Value for the Health Systems and CVS Health Example: 500,000 Lives System and $2 Billion in In-Patient Revenue Strong CVS channel preference Unique o CVS Health h High Quality Increased MinuteClinic Service volume Offerings Supporting pp g Value to Increased Providers’ Savi
Slide 35: Positioned for Today, Preparing for Tomorrow
Positioned for Today, Preparing for Tomorrow Acquired and rapidly expanded MinuteClinic Made the Right Moves Built Health Engagement Engine/adherence programs Unmatched, integrated assets and consumer expertise Still … Onl Only CVS Unique ability to connect the system/improve health Looking Ahead …