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OCTOBER 2010

State of the Art Exhibit Brings Bright Young Artists to D.C. Historic PBM Contract Implementation Begins

Get to Know … David Casey VSA founder Jean Kennedy Smith cuts the ribbon on the “State of the Art” exhibit in Washington, D.C.


Update from tom

Dear colleagues, As you know, we recently announced an exciting new partnership with Aetna, one of the nation’s leading health care insurers, representing nearly $10 billion in annual drug spend. We believe it is the largest and the longest-term new contract ever to have been negotiated in the history of the PBM industry. Aside from the obvious benefit to our bottom line and the economic health of our business, the true significance of this contract lies in the fact that there really could be no stronger affirmation of the value of our integrated business model. Aetna, of course, is one of the nation’s leading health care benefit companies, with a blue-chip roster of clients representing nearly 10 million lives. Aetna chose CVS Caremark because of the depth and breadth of services across our integrated model in addition to our focus on service excellence. Our innovative pharmacy service offerings-including Maintenance Choice, Pharmacy Advisor and the Consumer Engagement Engine – are features created through cross-functional teamwork across our enterprise that no one else can match. Learn more about how the deal came to life on Page 10 of this issue. This month, we also celebrated another important milestone in our company’s history: the 20th anniversary of our annual Paragon Awards. Our Paragon winners were recently celebrated at this year’s Operations and Marketing Conference in Dallas (see Page 16), and represent the best of the best from our Retail, MinuteClinic and PBM organizations. This legacy of recognition is one we should all be proud of and strive to follow every day in our own way, among our own teams. It doesn’t need to be big or formal, but recognition is an important part

... it’s our combined hard work and dedication that makes us the best pharmacy health

of engagement and is an indispensable element of our culture at CVS Caremark. So please join me in congratulating our 2010 Paragon Award recipients. You can read and watch more of their stories online at paragon.cvscaremark.com – and leave them a “Thank You” for their inspiring efforts. Of course, it’s our combined hard work and dedication that makes us the best pharmacy health care provider in this country. Thank you for all you do for CVS Caremark and our customers.

Sincerely,

Tom Ryan

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care provider in this country. Thank you for all you do for CVS Caremark and our customers.


What’s inside

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6G et to Know ... David Casey

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10 Aetna

16 Paragon Awards

Learn about our historic PBM contract

Our annual Paragon Awards represent

Our new Vice President of Diversity

with Aetna as the implementation

the best and brightest of CVS Caremark.

shares his thoughts on the future of

process kicks into high gear.

Learn more about our National and

diversity at CVS Caremark.

8 VSA Arts The “State of the Art” exhibit celebrates artists of all abilities in Washington, D.C.

12 O perations and Marketing Conference Wrap-up

Area winners.

Our senior executives charted the course for our future at the annual Operations and Marketing Conference.

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4 What’s News

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22 CVS Caremark Pride

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Historic PBM contract announced; free flu

Your colleagues making a difference – on

Our RealStories section highlights some

shots for colleagues and more.

the job and in the community.

of the many accolades we receive about our colleagues.

CVS Caremark

OCTOBER 2010

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what’s news

RxConnect Rollout Complete

InsIghts

2010

Colleagues from across the enterprise celebrated a significant milestone in September – the completion of the rollout of RxConnect, our state-of-the-art retail pharmacy dispensing system. With the Colleagues celebrated the last RxConnect conversion at Store #4169 in Fayetteville, N.C. system in place in our more than 7,100 CVS/pharmacy locations, we are now Resources, Field Management, and of course, our store positioned to introduce innovative new programs and pharmacy teams. initiatives that leverage the full capability of our combined enterprise, and put our pharmacists in an even better “This was truly a cross-functional effort,” says Josh Flum, position to improve the quality of life for our customers. VP Pharmacy Systems. “Our colleagues across the enterprise showed phenomenal teamwork, commitment and The RxConnect project touched nearly every area of professionalism throughout the project, and that’s what the business, including Pharmacy Systems, Pharmacy made it a success. I am extremely proud to be a part of Operations, Managed Care, Finance, Marketing, Human this great team.”

Evolving Pharmac y c arE

INSIGHTS 2010: Best-in-class Client Results To make smart choices, our PBM clients need the latest information at their fingertips about how they can manage their pharmacy and health care spending. Examples and results from peers are particularly helpful, as they demonstrate the relationship between keeping plan members healthy through adherence to prescribed therapies and controlling costs.

Per Lofberg

New President of Caremark Pharmacy Services

INSIGHTS 2010 is a new annual CVS Caremark publication for clients that highlights factors that affect prescription spending and provides forecasts through 2012. It also presents an overview of our groundbreaking adherence research and how we are evolving pharmacy care to help our clients improve outcomes and lower costs.

INSIGHTS 2010 allows our clients to learn from their high-performing peers, who are more likely to share goals and have similar challenges. The report covers major market segments, including employers, health plans and third-party administrators. The approach to reporting information by market segment was introduced at this year’s client forums. Through this approach clients see the range of trend, or growth in prescription cost over time, for their market segment. They are also able to review best-in-class performance in key metrics, including overall trend, specialty trend, generic-dispensing rate, adherence and use of preferred pharmacies. Access the full 2010 Insights Report online at https://www.caremark.com/portal/asset/CVSCaremark_Insights_2010.pdf

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Free Flu Shots for All Colleagues This year, flu shots will be available in every CVS/pharmacy and MinuteClinic. With free vaccinations available to all colleagues, it’s easier than ever to protect yourself against the flu. • Schedule an appointment online at CVS.com/flu or by calling 1-888-FLU-Shot. • Visit any CVS/pharmacy to ask a pharmacist for an appointment or walk-in clinic schedule. • Visit any MinuteClinic – no appointment is needed. • What to Bring – Employees covered under CVS Caremark insurance: bring your medical and prescription cards.* Employees not covered under CVS Caremark insurance: show a pay stub and photo I.D.

New this Year! “My Flu Shot Scheduler” is a brand new way to get your flu shot. Visit CVS.com/flu, where you can easily search for the closest CVS/pharmacy and MinuteClinic locations, reserve an appointment or view times where you can walk in without an appointment. No Internet access? Call 1-888-FLU-SHOT to schedule an appointment by phone.

flu facts Stay flu free with these tips from the Centers for Disease Control: Everyone aged 6 months or older should receive an annual influenza vaccination. People at high risk of serious flu complications include young children, pregnant women, people with chronic health conditions like asthma, diabetes or heart and lung disease, and people aged 65 years and older. The seasonal flu shot is an all-in-one that includes the influenza B, H1N1 and H3N2 strains. Getting the flu shot is the best defense against flu. The shot not only lowers your risk of getting the flu, it helps prevent the spread of the virus to others. Cover your nose and mouth with a tissue when you cough or sneeze. Wash your hands often with soap and water or use hand sanitizer. Avoid touching your eyes, nose and mouth.

*Dependents of those with a CVS Caremark medical plan are also eligible to receive a free flu shot as part of the plan benefit.

CVS Caremark

OCTOBER 2010

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diversity

Get to Know

David Casey Vice President, Diversity Officer

David Casey was recently named Vice President and Diversity Officer. His role is a new one for the company and is an indication of our company’s continued commitment to the strategic management of diversity in all areas of our business. We sat down with him to discuss his new role and the opportunities ahead.

Tell us about yourself. I’ve been with CVS Caremark since January of this year. Prior to joining CVS Caremark I spent eight years as the Chief Diversity Officer at WellPoint headquartered in Indianapolis, Ind. I’ve also spent 10 years in retail store management for the Gap and Abercrombie & Fitch. Coming to CVS Caremark gives me the opportunity to combine the health industry experience I gained at WellPoint with my prior retail experience. On a personal note, I now reside in Rhode Island with my wife and three children, and I’m a Marine Corps veteran. I served eight years in the USMC, having served in Operation Desert Storm.

How would you define diversity? Diversity is interesting, because if you were to walk down the street and ask 10 people what diversity means to them or how they would define diversity, you’d probably get 15 different answers! And I think therein lies one of our greatest opportunities and our greatest challenges: getting people on the same page with understanding

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what diversity truly is and how we can leverage it to help us meet our mission and business objectives.

Workforce Representation – reflect the marketplaces we serve and the demographics of our communities

A definition of diversity that I think serves the business environment very well is one developed by the American Institute of Managing Diversity - “Any collective mixture that’s characterized by differences, similarities, and their related tensions and complexities.” This definition not only includes the “people” components of diversity, but broadens our thinking about diversity in a way that also includes things like merging diverse corporate cultures during a merger or acquisition, inter-departmental diversity, regional differences, etc.

Colleague Engagement – leverage workplace relationships by creating and sustaining an environment of inclusion

For example, you could have a room full of white men, all under the age of 40, and still have significant diversity – age, military experience, sexual orientation, religion, etc. Diversity does include some of what we think of as “traditional” categories like women and people of color, but there’s also a lot more to it than just that.

Explain the role of the Diversity Officer. One of the more immediate areas of focus for my team and me is to build conceptual clarity around how we, as a company, are going to define diversity, and to introduce a consistent and methodical way to manage it as it pertains to our customers, colleagues and communities. I see the role of the Chief Diversity Officer and the Corporate Diversity Management team as being primarily internal consultants, driving a common definition and a common framework for managing diversity – something many companies don’t take the time to do. At risk of oversimplifying it, we need to do three things well – educate, equip and empower our colleagues to manage diversity as a means of delivering on our company objectives.

What is strategic diversity management? We’ve historically defined this body of work as “Diversity and Inclusion” at CVS Caremark. While that is a perfectly legitimate way to think about the work, more times than not, D&I puts the primary focus on the things we do internally for our colleagues to build a culture of inclusion. Often times, what gets left out of the discussion is a deliberate and direct conversation about how this work drives business results in the marketplace. We have since positioned our work around four strategic objectives:

Talent Systems – optimize and/or create policies, practices, programs and procedures that enable talent management throughout the enterprise Marketplace Diversity – ensure alignment with and engagement of ALL key external customers, clients, communities and constituencies (e.g., legislators, suppliers, regulators, investors, non-profit partners)

How would you rate CVS Caremark on diversity today? There is a strong foundation of work in this space that’s been built over the years – we do not have to start from scratch or ground zero. There’s been a lot of good work done here and a lot of good initiatives are already underway that simply need to be positioned in the context of a measurable strategy. For example, I have recently added the accountability for leading the Workforce Initiatives team. This team’s primary areas of focus are developing and executing innovative, community-based partnerships and workforce development programs for mature workers, youth, people with disabilities, veterans and incumbent workers. This team has well-established partnerships with more than 700 organizations across the country, including some of the country’s leading nonprofits and faith-based organizations. The combination of the corporate diversity management team and the WI team will give us an even greater capacity to leverage resources and position this work strategically.

What’s ahead? What our colleagues will see and hear over the coming months is a lot of communication focused on defining what we mean by diversity, including the differences between diversity management, diversity and inclusion, affirmative action, and so forth. It’s critical that we’re all marching to the beat of the same drummer as we leverage this work in support of our Vision, Mission, and Values.

CVS Caremark

OCTOBER 2010

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VSA

All Kids Can and VSA Showcase the Creativity of Student-Artists from Across the Country Amanda LaMunyon, 15, recently had the experience of a lifetime: a trip to the nation’s capital with her family to see her artwork on display for an audience of thousands of people. “It was such a privilege,” says the high school sophomore. “I was so excited and shocked that my painting was chosen for this event.” The event was the “State of the Art” exhibition in Washington, D.C.’s Union Station, and Amanda, who has Asperger’s syndrome (an autism spectrum disorder), was part of a group of talented artists who were selected to showcase their work. Each of the artists, aged 5-15, is a student who lives with a disability. The exhibit was sponsored by the joint program “All Kids Can …

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CREATE!”, a partnership between All Kids Can and VSA, the international organization on arts and disability. It was one of the exhibitions displayed at the 2010 International VSA Festival, which featured artists with disabilities in venues citywide.

gram to create the opportunity for the students and their families to see the exhibition, meet one another, attend the festival, and tour the nation’s capital,” says Soula Antoniou, president of VSA. “The students were very excited and I know this means so much to them.”

One student-artist from each state (along with a Washington, D.C., finalist) was selected from more than 5,500 entries to showcase their artwork in “State of the Art.” CVS Caremark invited the chosen artists and their families to travel to Washington, D.C., to experience the festival, meet their state’s elected officials and participate in a ribbon-cutting ceremony to commemorate the exhibition.

The festival also featured a Congressional Reception on Capitol Hill during which five teachers were honored for their efforts to inspire children with disabilities through the arts.

“We are grateful to CVS Caremark for partnering with us on this unique pro-

“To be recognized as part of VSA’s incredible showcase of talent, which changes people’s perceptions of disability through art education, is one of the best compliments a teacher can receive,” says Liz Ebanks, an educator from Florida who was awarded $1,000 to use for classroom materials.


About VSA VSA, the international organization on arts and disability, was founded more than 35 years ago by Ambassador Jean Kennedy Smith to provide arts and education opportunities for people with disabilities and increase access to the arts for all. With 52 international affiliates and a network of nationwide affiliates, VSA is changing perceptions about people with disabilities around the world. Each year, 7 million people of all ages and abilities participate in VSA programs, which cover all artistic genres. VSA is an affiliate of the John F. Kennedy Center for the Performing Arts. VSA has been an All Kids Can National Partner since 2006.

“We can overcome and we can still shine.”

While in Washington, D.C. the teachers, young artists, and their families had the opportunity to attend performances and view artwork by professional artists with disabilities.

President Antoniou recognized the importance of having the student-artists and their families present for the ceremony and had a special message for CVS Caremark.

For Amanda, who represented her home state of Oklahoma with an impressionist painting of the Scissor-tailed Flycatcher bird, the festival was inspiring.

“We know all of you care, and quite honestly, that’s what makes a difference,” Soula said about CVS Caremark employees. “The families that are here today are a testament to your support and how much the generosity of your company matters in real lives.”

“It was so cool to see all the great artwork and to know that I was a part of it,” she says. “I really enjoyed walking around with my mother and father and seeing all the sights in D.C.” During the ribbon-cutting ceremony of the “State of the Art” exhibition, VSA

- Amanda LaMunyon

traveling throughout the country in a two-year exhibition. Amanda hopes that the exhibition will help people see the talents of children with disabilities. “I want people to understand that although we may have a disability, we still have abilities,” she says. “We can overcome and we can still shine.” All 5,500 art entries will be included in an online gallery at www.vsarts.org.

The student artwork was on display to Union Station visitors (an audience estimated at 90,000 art fans) during the month of June and is now

COMING SOON! The 2010 Call for Art will open in October. To enter your child’s work visit VSArts.org during the month of October.

CVS Caremark

OCTOBER 2010

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Aetna

January 1, 2011 marks start of 12-year contract

Due diligence process spanned 35 days

Consumer Engagement Engine was a strong selling point

After sealing the deal with Aetna, implementation process kicks into high gear Steve Cohan, Senior Vice President of Health Plan Sales, feels the adrenaline rush as CVS Caremark gears up for the Jan. 1 start date of CVS Caremark’s historic PBM contract with Aetna. The 12-year agreement to provide pharmacy benefit management services to the Fortune 100 health plan provider represents approximately $10 billion in annual drug spend and covers about 9.7 million lives.

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“With our unique model, we can leverage the scale and scope of our purchasing synergies and operating efficiency to provide real value to Aetna customers. We’re excited to move forward in the process.”

The deal between the two companies was several years in the making. Sales and Account Services SVP James Margiotta, who will lead a dedicated implementation and service team to work with Aetna, credits Steve and numerous colleagues across the enterprise for “a significant amount of heavy lifting” to bring the contract to the point of closure. “The process was a testament to our model of PBM, retail and MinuteClinic,” James says. “It couldn’t be more positively structured in a way that both organizations wanted, and it allows us to forge a strong relationship with each other.” Steve recalls that the final stages of the contract negotiations included hours-long conference calls over two weeks. “A tremendous amount of work on both sides went into crafting our strategy and negotiating the deal,” he says. “And in the end, I was proud to be part of this great team, under the overall guidance and direction of David Joyner.” Steve notes that CVS Caremark got continuous positive feedback during the 35-day “due diligence” period in which the company was being evaluated. “We went through some pretty tough dialogue, and we were told we were the most knowledgeable, forthcoming and sincere team in our interactions.”

Aetna looked at every other PBM alternative, but it was CVS Caremark’s underlying strategy that sealed the deal. Our Consumer Engagement Engine as a coordinated, multi-channel approach to helping members better manage their health was a strong selling point. Also to CVS Caremark’s credit were programs such as Maintenance Choice and Pharmacy Advisor – offerings made possible by our integrated retail and mail pharmacy model. “Our programs and services were seen as real market movers and differentiators that could help Aetna retain existing members and attract new ones,” Steve points out. With the contract effective date just a few months away, the implementation process is kicking into high gear. Joining James Margiotta on the transition team are Ken Czarnecki, who will lead Mail, Customer Care, Clinical and Specialty Services efforts; Kuldeep Sidhu, Project Management; and Greg Gierwielaniec, Financial Management. “With our unique model, we can leverage the scale and scope of our purchasing synergies and operating efficiency to provide real value to Aetna customers,” James says. “We’re excited to move forward in the process.”

CVS Caremark

OCTOBER 2010

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operations and conference 2010 marketing

Preparing for What’s Ahead Merlo Readies Colleagues for the Road Ahead in Pharmacy Care President and COO Larry Merlo welcomed colleagues to the 2010 CVS Caremark Operations and Marketing Conference with a reminder of the event’s theme – My Store. My Team. My CVS. “It’s our customers saying ‘I am going to My CVS’, not just I’m going to CVS. It’s our colleagues using My Store, My Team, not just the Store, the Team. And while it may seem subtle, it’s a whole new perspective that drives accountability and responsibility,” he explained. “And that’s what we have to remember – each of us puts a face to CVS, and that picture becomes complete through our collective efforts. Throughout the next few days, you’ll be seeing, learning, and participating in exercises and events that support this theme.” Over the course of the presentation Larry acknowledged a number of the challenges that our business has faced this year, including slower pharmacy and sales growth and our ongoing

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struggle with inventory management, but it was his consistent focus on the opportunities and exciting programs ahead that left colleagues encouraged about the future. This was especially true in his remarks on health care reform, and our ability

“Our enterprise model is perfectly situated as a solution to the health care equation of access, quality and cost.” to improve the quality of human life for those suffering from chronic diseases. “Our enterprise model is perfectly situated as a solution to the health care equation of access, quality and cost. It’s not just our Retail stores or our

PBM; it’s also integrating MinuteClinic, our Specialty business, and Generation Health that closes the loop,” he explained. “We have the ability and the license to offer innovative, high quality, practical solutions that provide greater access, improve the health of those we serve and lower the overall cost of health care.” Successfully delivering on those solutions will require the best efforts of our colleagues, he explained, including the more than 2,000 pharmacists, store managers and field leaders gathered in Grapevine, Texas, for the week’s activities. But it can’t happen at the expense of what we have already achieved. “How do we take what we have done in the past to be successful and shift and apply it to what needs to be done to win in the future?” he asked. “Your leadership is going to become even more important because of the complexity of the world and marketplace in which we operate.”


The Summitt of Success “You don’t take donkeys to the Kentucky Derby,” Wednesday’s keynote speaker Pat Summitt told the packed house. “Get yourself some race horses!” That advice, which she first heard from her dad, has been part of Pat’s formula for success for more than 35 years. And as the all-time winningest coach in NCAA women’s basketball history, Pat knows a thing or two about building a highly engaged, talented team that is committed to getting results.

Back to the Future Ryan offers reflective and encouraging message to colleagues Tom Ryan used his final turn at the podium as Chairman and CEO, to address colleagues about the future of the company he has helped mold over the past 36 years. Offering both tales from his early days at CVS and insights into how we can build on our current success, Tom left colleagues with a sense of hope. “Our biggest challenge is how we consistently grow a company with $100 billion in sales,” he said. “Is it going to be difficult? Is it going to be challenging? Yes. But is it going to be impossible? Not at all.” The key to our continued growth lies in our colleagues’ ability to think differently and innovate, and work together to bring to life the full potential of all CVS Caremark can offer, he said. “Our integrated approach to the delivery of pharmacy care is our edge. Our stores working together with our PBM will be the lynchpin of our success,” said Tom, highlighting several examples.

But perhaps the best, he said, can be found in our Pharmacy Advisor Program. It’s an approach our company – and others – have tried in the past, but one that we are now uniquely positioned to succeed in implementing.

As she shared her “Definite Dozen”* – 12 strategies for success in business and life – she related several personal experiences that have had a profound impact on her life and have helped her build a championship basketball program at the University of Tennessee. Through it all, she says, the key elements of respect, communication, accountability, a competitive spirit and teamwork have served her well. “Be a championship team,” she challenged colleagues. “Have one heartbeat, one team ego, and you can achieve greatness.”

“Pharmacy Advisor will be one of the biggest breakthroughs in our company’s history. This is why we did the deal. It’s a breakthrough that no one else can replicate,” he said. Tom also addressed his upcoming retirement, reiterating his reasons for the decision, the most important of which is his faith in the leadership of Larry Merlo. “He is already an extraordinary leader who keeps getting better.” Tom reflected on some of his best memories of CVS. “Thank you for everything you have done for our company, for me personally. It’s been great to lead this company,” he said. But it was his colleagues who offered the final show of gratitude, giving Tom a three-minute standing ovation.

*In case you were wondering … 1. Respect Yourself and Others 2. Take Full Responsibility 3. Develop and Demonstrate Loyalty 4. Learn to be a Great Communicator 5. Discipline Yourself so No One Else Has To 6. Make Hard Work Your Passion 7. Don’t Just Work Hard, Work Smart 8. Put the Team Before Yourself 9. Make Winning an Attitude 10. Be a Competitor 11. Change is a Must 12. Handle Success Like You Handle Failure

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operations and conference 2010 marketing

Spotlight on the Future Panelists Highlight What’s to Come Following Larry Merlo’s address, six of our company’s senior leaders came together to provide an overview of how we will differentiate our company, improve the lives of our customers and lower health care costs.

he explained. “Pharmacy care is the lowest-cost, most effective form of treatment for managing disease and our pharmacists are positioned on the front lines, closest to the patients, at the point of care.”

“We must do all we can to make customers feel that we view them as people, not prescriptions,” said Rob Price, SVP, Marketing and Advertising. “Today, our customer is saying I need more access to know-how and I need someone within reach who knows me. We want her to say with confidence, This is my store. This is my CVS.”

Added Troy Brennan, EVP and Chief Medical Officer, “The retail pharmacist is the strongest, most effective communicator in health care.” And this, explained panelist Josh Flum, VP, Pharmacy Systems, is where we can make the biggest difference in the future of health care, with our Pharmacy Advisor Program.

How can we do that? By focusing The program, which CVS Caremark on personalization – through targeted clients can select for their pharmacy e-mail, customer education and benefit plans, is new programs designed to engage like ExtraCare for “We want her to chronic-disease Diabetes. We’re also say with confidence, patients in their redesigning stores in therapy, manage urban areas, adding This is my store. gaps in their care more baby items and improve their This is my CVS.” and grab-and-go medication adherence. consumables, so Key elements of the that our stores reflect the way our program include targeted patient customers shop. And finally, explained interventions in the pharmacy and Mike Bloom, EVP Merchandising through telephone advisors. and Supply Chain, we’re lowering thousands of prices on everyday items “This program leverages the strengths to improve our value perception. of our entire organization and will be Scott Baker, EVP, Internal Operations and Real Estate, impressed upon the crowd that as the health care environment evolves, so must the role of our pharmacists. “The pharmacist’s role is evolving from that of a provider of medication to that of a provider of unique services,”

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our flagship PBM clinical offering for 2011 and beyond,” said Josh. “It’s what our clients want, and we’re the only ones who can deliver on it.” Hanley Wheeler, SVP, Operations – East Division, concluded, “I have never been more proud of our organization than I am now for how we are leading the profession with Pharmacy Advisor."


Area Breakout Activities Support Success Launching toy rockets and building with Legos may sound like child’s play, but it was serious business during the Area Breakout sessions planned for this year’s Conference goers. Orchestrated by HR Training and Development, the fun, highenergy exercise was developed with a goal in mind: to help store and field leaders develop the skills they need to

lead their teams into the next phase of pharmacy health care. Specifically, it was intended to help our colleagues more successfully navigate the challenge of implementing innovative new programs like CSI, PCI Connect and Pharmacy Advisor, while also maintaining the success they’ve built with previous initiatives – a key challenge highlighted by Larry Merlo in his Conference opening remarks. The challenge pitted 131 teams from across our 53 Regions against one another in exercises that were chosen by Region Managers. How effectively teams handled their approach to basic tasks (e.g., customer service

issues) and innovative programs (e.g., Pharmacy Advisor) helped determine how far and how accurately a team’s rocket could be launched. Needless to say, the competition was at a fever pitch. But just as important as a team’s rocket was their approach to the whole process, explained HR Director, Susmita Chauhan, who served as a moderator for the competition. “How you play the game and get engaged is indicative of how you come to work. Do you stand around or do you get involved and help solve the problem?” she asked.

Rewarding Partnerships 2010 Supplier Partner Awards The rewards and recognition at this year’s Conference were not reserved solely for our Paragon Award winners. The event also represents an opportunity for us to honor our supplier partners for the valuable contributions they make to the success of our business. These companies work handin-hand with us to develop innovative and creative solutions around our merchandise and product offerings that ultimately benefit our customers. Each year, we reward our top supplier partners in a number of our key categories. This year’s winners included MARS (pictured here), which received the General Merchandise and Consumables award, and BDF Beiersdorf, our overall winner.

2010 Supplier Partner Award Recipients Overall Winner: BDF Beiersdorf General Merchandise and Consumables: MARS Chocolate: M&M’s Pharmacy: Novartis Pharmaceuticals Consumer Health Care: U.S. Nutrition Beauty/Personal Care: BDF Beiersdorf Store Brand: Best Sweet

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NATIONAL PARAGONS

Our annual Paragon Award recognizes the best of the best among our CVS Caremark colleagues. This award, which is traditionally given during a ceremony on the first night of the conference, is the highest honor a colleague can achieve in our organization, and is reserved for those who have made remarkable contributions to our company. Our Paragons have embraced their role in helping to improve the quality of human life and inspire others to do the same. The example they set each day helps our entire organization succeed.

Cynthia Carroll Manager, Customer Care PBM - Kansas City, Mo.

Cynthia takes service from good to great. Her team handles the most difficult customer issues that have the most potential for dissatisfaction. She makes sure her team is well supported and removes any roadblocks to resolving problems, even if she has to handle the problem herself.

Celeste Cook Store Manager Store #7264 - Anthem, Ariz.

Although her store is just four years old, Celeste has already made an indelible impact on her community. Her customers regularly describe #7264 as “My CVS,” and thanks to Celeste’s incredible work ethic and colleague engagement efforts, her store has become the gold standard for customer service excellence.

Lucy Ikona Pharmacist Store #8594 - Kansas City, Mo.

Lucy’s determination and hard work, combined with her proactive leadership style, have made it possible for Lucy to build a loyal and talented support team in a very difficult area to staff. In fact, her pharmacy saw zero staff turnover in 2009, and received 100% on store execution for support staff retention.

Steven Lang Store Manager Store #8045 - Warren, Mich.

Store #8045 ended 2009 with a 96.67 front store Execution score. Although Steve and his team made it look easy, there was a carefully thought-out plan for success. His delegation and organizational skills meant that the right people were assigned to the right task at the right time.

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Sharon Lepore Store Manager Store #849 - Montvale, N.J.

Sharon creates a work environment that pushes her employees to do better and knows the importance of maintaining a positive, fun atmosphere. She believes in continually training her staff, developing their skills in all areas around the store, and promoting them to leadership roles. Above all, the focus for all colleagues is on accountability.

Danielle Madonia Senior Account Manager PBM - Scottsdale, Ariz.

Danielle’s success with CVS Caremark has been built on a track record of consistently great performance and proactive, caring service to her members and clients. According to one of her clients, “When a highly escalated issue is at hand we are confident knowing Danielle will respond quickly and offer solutions.”

Melissa McLallen Pharmacist Store #1403 - Vienna, Va.

Melissa is the consummate professional. She strives for a comfortable, enjoyable workplace with a culture that is open to innovation, but also makes a point to add a little fun along the way. She coaches “in the moment,” to ensure that all members of her staff know the importance of everyday procedures.

Nacole Nelson Nurse Practitioner, MinuteClinic Store #7197 - Maplegrove, Minn.

Nacole is an outstanding role model. Always confident, compassionate and respectful, she consistently goes the extra mile for her patients and colleagues. Her front store and pharmacy colleagues value Nacole as a part of the total store team, and will frequently visit her clinic, not just when feeling ill, but also for wellness monitoring.

David Sheffield Pharmacist Store #3832 - Kernersville, N.C.

David keeps his pharmacy thriving through his ability to build strong relationships with his customers. He has a knack for making his customers comfortable and gains their trust with his professionalism and experience. He knows all of his customers, and consistently demonstrates the kind of professional, compassionate service he expects from his team.

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AREA PARAGONS

Denisha Boxley Store Manager Store #5051 - Marietta, Ga.

Pamela Bolen Nurse Practitioner, MinuteClinic Store #7099 - Nashville, Tenn.

Jane Buhager Store Manager Store #7131 - Miami, Fla.

Kara Davis Pharmacist Store #6580 - Indianapolis, Ind.

Reldon Lee Gifford Store Manager Store #9494 - Newark, Calif.

Henry Hine

Janice Goertzen Pharmacist Store #9710 - Fowler, Calif.

Pharmacist Store #7099 - Franklin, Tenn.

Mary Hurtadodemendoza Pharmacist Store #2475 - Cos Cob, Conn.

Lyndon Jenkins Store Manager Store #1745 - Flower Mound, Texas

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Tanya Oakes Pharmacist Store #2077 - Philadelphia, Pa.

Karen McDaniel Store Manager Store #1435 - Hagerstown, Md.

Jocelyne Kamdem Pharmacist Store #75 - Lynn, Mass.

Johnny Porter Pharmacist Store #7412 - Dallas, Texas

Jennifer Perzan

Bonnie Shimko

Store Manager Store #4436 - Manchester, Conn.

Pharmacist Store #5187- Naples, Fla.

Rachel Payne Nurse Practitioner, MinuteClinic Store #7012- Ballentine, S.C.

Randy Raymond Jr. Leon Quan Pharmacist Store #8781 - Pomona, Calif.

Store Manager Store #4245 - Washington, Pa.

Colin Sheffield Pharmacist PBM - Phoenix, AZ

Blake Simpson Manager, Pharmacy Operations PBM - San Antonio, Texas

Scott Spindler Store Manager Store #1611 - Scranton, Pa.

Don Westerlin Store Manager Store #8616 - Lincoln, Neb.

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Now it’s part of every issue of Connections! We receive hundreds of outstanding service stories each month, and want to share them with you more often. Look for new stories in each issue of Connections. And if you see a colleague going the extra mile to improve the lives of those we serve, let us know. Send an e-mail with the details to RealStories@CVS.com.

Vipul Soni

Rafael Cordova

Pharmacist Store #4982 Fishers, Ind.

Customer Care Representative San Antonio, Texas

“Eye” Spy ... A Chance for Savings Dear CVS Caremark, I wanted to send a compliment to the CVS pharmacy supervisor about a person who really helped me, Vipul Soni. I went to the doctor about my son’s eye and he prescribed a medication that was not covered by my insurance and would have cost me $120 for two bottles. When Vipul told me the cost, I was ready to walk away without the medication because I could not afford it. But then, he asked me to wait while he paged my doctor (after hours) and suggested a different generic medication that was covered and would only cost me $10 for both bottles. When the doctor said it was okay, Vipul informed the doctor about the different strengths and together they came up with a new dosage regimen. The doctor told me later he really appreciated the care Vipul took to help me and he would recommend the new drug to his other patients and CVS in general. My son is doing much better and I will continue to seek Vipul’s help in the future. Thank you for hiring such a caring and dedicated person. Sincerely, Katherine

20

connections

An Exceptional Experience Dear CVS Caremark, I wish to express my appreciation for the exceptionally good service provided to me by Rafael Cordova in your customer service department. My problem related to a rather complicated prescription matter that required a clarification of the dosage instructions by my ophthalmologist. The bottom line: it was an intricate issue. Mr. Cordova understood all aspects of the situation and handled the matter adroitly. Sincerely, Larry

Mr. Cordova understood all aspects of the situation and handled the matter adroitly.


Helen Dohm

Kim Vest

Nurse Practitioner MinuteClinic Philadelphia, Pa.

Specialty Pharmacy Services Representative Lenexa Specialty Pharmacy Lenexa, Kan.

Get Me to the Church on Time

Vest Assured

Dear CVS Caremark,

Dear CVS Caremark,

I am not typically one to take the time to reach out to a corporation regarding their employees, but I recently had an experience at one of your MinuteClinic facilities that I felt warranted recognition. My 5-year-old daughter, Bella, and I were in Pennsylvania for a wedding recently, visiting from Atlanta. The morning of the wedding, my daughter awoke with a high fever and a severe earache. Being from Atlanta, I was very familiar with MinuteClinics and was relieved to learn you had local offices in the Philadelphia area.

I want to inform you that I spoke to Kim Vest the other day and she went above and beyond the requirements of her job.

We headed to the nearest clinic right as they opened. Unfortunately, the nurse was not in, detained in traffic. Another MinuteClinic employee, Helen Dohm, CRNP, arrived shortly after but was only there to pick up some supplies for an event. However, seeing the line of patients and keenly aware of my daughter’s pain, she dropped what she was doing, assured us she would take care of us, and quickly set up the office to accommodate us.

I was having a horrible morning and it’s nice to know that there are people out there that can spread happiness and that still care. I typically am the person who is always smiling and sees the glass as half full. Kim showed me great compassion the other morning, restoring by belief in people that truly do care about others.

Ms. Dohm was extremely thorough in her assessment of my daughter, spoke to her in a very comforting manner and took the time to explain the diagnosis with me. Knowing my daughter was scheduled to be the flower girl at a large wedding that evening, Ms. Dohm, went the extra mile to recommend additional treatments we could employ to help get Bella well enough to walk down the aisle.

Sincerely,

Kim showed me great

compassion the other morning, restoring by belief in people that truly do care about others.

Mrs. L

Ms. Dohm’s genuine concern, selflessness and professionalism are remarkable. Thanks to Ms. Dohm, my daughter felt well enough to be the most beautiful flower girl in town that night! Sincerely, Nicole

CVS Caremark

OCTOBER 2010

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CVS CAREMARK pride

Our Colleagues Making a Difference at Work and in Their Communities

CVS Caremark colleagues in San Antonio, Texas, and Knoxville, Tenn., participated in The National Association of Letter Carriers Association’s 18th Annual “Stamp Out Hunger” National Food Drive. Colleagues and their family members delivered a “First Class” effort by collecting $7,581 in cash donations and 1,388 lbs. in food donations. Arturo Andrade, Customer Care Manager, San Antonio, Texas, led the effort start to finish and really energized his colleagues.

Kansas City call center employees rallied together during the month of July to help provide school supplies for the Don Bosco Center’s Project Yes! Back to School drive. Kansas City is historically one of the largest contributors to this drive, and this year was no exception. Overall, more than 6,800 items were donated to Don Bosco Center on August 5. In the picture: Customer Care Supervisor Brenda Newport and CCR Greg Tyc take a second to pose with volunteers from the Don Bosco Center.

CVS Caremark pride! Send us your photos

The PBM Commercial and Medicare D Client Implementation teams participated in a charity/team building event as part of their annual meeting. Hosted in Scottsdale, Ariz., colleagues were able to participate in some healthy games and give back to the community through an organization called Direct Effect Team Building. By completing three brainteaser exercises, each team was awarded the parts and materials to build children’s bicycles and teddy bears. A total of 48 teddy bears was donated to the Phoenix Children’s Hospital. The most rewarding and ultimate prize of the event was the donation of 18 bicycles to a local Reservation Boys and Girls Club.

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connections

Colleagues from Area 4, Region 68, District 9 were on hand at Mayfair Park in Hurst, Texas, for a Boundless Playgrounds dedication. The team helped with the fundraising for the project, and also represented our company at the ceremony. At the dedication, our CVS Caremark volunteers gave out free products such as water (the most popular item on the 101-degree day), bubbles, lip balm, hand sanitizer, pocket tissues and toothbrushes.

of CVS Caremark pride. Be sure to tell us a little about the event and the colleagues involved.

Connections 1 CVS Drive Woonsocket, R.I. 02895 E-mail: Connections@cvs.com


In September our retail organization celebrated a major milestone with the completion of the rollout of our RxConnect pharmacy system. This important accomplishment is the culmination of several years of hard work by colleagues

a word with Larry

Dear colleagues,

across our business and deserves a big “Congratulations” to all involved in getting more than 7,100 stores up and running on the system. But this achievement is about much more than just our retail business. With RxConnect in place we now have the ability to connect numerous CVS Caremark systems to our pharmacies. That, in turn, sets the stage for us to introduce innovative new programs that leverage the full capability of our combined enterprise and put our pharmacists in an even better position to improve the quality of life for our customers. Technologies like RxConnect are critical to the future growth of our company as they directly affect our ability to provide greater access, convenience and choice to our patients. However, as I recently told attendees at our annual Retail Operations and Marketing Conference (Page 12), with health care reform on the horizon, improving access is only one area we’ll need to deliver on to remain competitive and relevant. Quality and cost are the others, and I truly believe our company is uniquely positioned to lead the charge on both.

I know that working together

Why? Non-adherence for our chronic disease population alone is expected to

we’ll continue to capitalize on

cost the US health care system $290 billion in avoidable and costly heath com-

our opportunities and make

and PBM offerings to MinuteClinic, our Specialty business and even Generation

great things happen.

offerings successfully should not only improve the quality of care for our patients,

plications. Our enterprise-wide suite of business offerings – from our Retail stores Health – is a combination that nobody in the industry can match. Integrating these but help lower their costs as well. That’s why now more than ever it’s important for us all to grasp the significance of our potential, and continue our efforts to develop unique, innovative programs that take advantage of similarly unique capabilities. I know that working together we’ll continue to capitalize on our opportunities and make great things happen.

Sincerely.

Larry Merlo

CVS Caremark

OCTOBER 2010

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Pin

nd Isla , Fla .

e

R

OCTOBE

2010

33956

Greetings from … Pine Island, Fla. CVS/pharmacy Store #3274 is located on Pine Island, a quaint fishing locale that is rich in Native American history, and has a vibrant community of artists and musicians. The store is a fixture of the community, not just for the yearround residents, but for thousands of tourists and snow birds (people who live in cooler climates in spring and summer, then head south for winter). Their arrival means doubled sales during the winter months, with customers visiting from as far away as Canada and Germany! To help manage the higher winter sales volume, the store began working with Alliance Abroad Group in 2005. This organization provides educational travel programs to people around the world. Each year since then, the program has brought students from Argentina, Brazil and Peru to work at #3274 while on break from college. Sabastian, who is from Argentina, spent his school break working with Store Manager Loretta D’Souza and the crew at the Pine Island store. While it was an exciting opportunity, the job was also his first experience being away from family and friends. “Loretta and all my colleagues made it feel like home,” says Sabastian. “For example, on my 20th birthday, I felt very sad and alone. But when I came to work that day, all my teammates surprised me with a big cake and gifts!” The store is the only pharmacy on the island and has been in the same location for 30 years. The colleagues who work there have built wonderful relationships with their customers and with one another. In fact, they proudly say that they know everyone who walks in the door. And even though the students come and go each year, they too become part of the extended Pine Island family.

GREETINGS FROM YOUR LOCATION? Would you like to see your site and city featured in “Greetings from …”? Tell us your story. What makes your workplace unique? Are there any special events that take place nearby? Maybe some interesting fun facts that set it apart? In a future issue, we will feature the best write-in selections on our back cover. Send your nomination to Connections@cvs.com.

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