New CVS Health® report explores ongoing transformation of community pharmacy

Rhea-AI Summary

CVS Health has released The Rx Report, exploring the transformation of community pharmacy and opportunities to meet consumer expectations, support the workforce, and advance the pharmacy model. Key findings from a CVS Health/Morning Consult survey reveal:

- 76% of consumers have at least one active prescription
- 81% trust their local pharmacist
- 83% value their pharmacist's recommendations
- 70% prefer in-person interactions over digital-only experiences

The report highlights challenges in the industry, including the need for a new reimbursement model. CVS Pharmacy is introducing CVS CostVantage, a transparent formula based on drug cost plus a dispensing fee. The report also emphasizes the importance of supporting pharmacy teams and inspiring the next generation of pharmacists, as enrollment in pharmacy schools has declined by 29% in the last five years.

Positive

• High consumer demand for pharmacy care, with 76% having at least one active prescription
• Strong trust in local pharmacists (81%) and their recommendations (83%)
• Introduction of CVS CostVantage, a new transparent reimbursement model
• Investment in workplace improvements and new ways of working to support pharmacy teams
• Commitment to transforming pharmacy and addressing industry challenges

Negative

• Declining enrollment in pharmacy schools by more than 29% in the last five years
• Challenges with the current decades-old pharmacy reimbursement model
• Pressures and challenges experienced by pharmacy teams during the pandemic

Insights

Market Research Analyst

This report from CVS Health highlights significant trends and consumer attitudes towards community pharmacies. Key findings include:

• 76% of consumers have active prescriptions, indicating high demand for pharmacy services.
• Strong trust in pharmacists, with 81% of consumers trusting their local pharmacist and 83% valuing their recommendations.
• 70% prefer in-person interactions, suggesting resistance to fully digital pharmacy models.

The report also addresses industry challenges, including the need for a new reimbursement model and workforce support. CVS's introduction of the CostVantage model aims to create a more sustainable business model. However, declining pharmacy school enrollment (29% drop in 5 years) poses a long-term challenge for the industry.

While these findings underscore CVS's strong position in the market, they also highlight the need for ongoing investment in workforce development and adaptation to changing consumer expectations. The emphasis on trust and accessibility could be leveraged for competitive advantage, but also requires continued focus on service quality and community engagement.

CVS Health/Morning Consult survey reveals most pharmacy teams and consumers say more care and services can and should be provided in community pharmacy

Demand for pharmacy care is high, with 76% of consumers having at least one prescription for themselves or a person they care for

Most consumers (81%) say they trust their local pharmacist and 83% say their pharmacist's recommendations are important to them

WOONSOCKET, R.I., Oct. 15, 2024 /PRNewswire/ -- CVS Health® (NYSE: CVS) today released the Rx Report: Transforming Community Pharmacy to Make Healthier Happen Together, which explores the ongoing evolution of community pharmacy as well as opportunities for the industry to keep pace with consumer expectations, better support the workforce and advance the pharmacy model to create a more viable, sustainable future for the industry.

"It's time for change in community pharmacy, and CVS Pharmacy is starting from a place of strength because of the impact we have on local communities across the country," said Prem Shah, Executive Vice President, Chief Pharmacy Officer, and President of Pharmacy and Consumer Wellness, CVS Health. "Consumer demand for pharmacy care is high, and our research shows that Americans deeply trust and rely on their pharmacy teams for important care and credible information. Our people and trust are the heart of everything we do, and why as we look toward the future, we're focused on ensuring a viable, sustainable pharmacy model that helps ensure we can be there for Americans, when and where they need us."

The Rx Report findings underscore the importance of a community pharmacy that prioritizes one-on-one interactions, ensures local access to important care and uses technology to create efficiencies and allow more time for meaningful moments that matter to consumers.

Key findings from The Rx Report CVS Health survey^* include:

• 76% of consumers have had at least one active prescription for themselves or those they care for and 79% have visited a pharmacy in the past year.
• Most consumers (80%) believe their pharmacist is one of the most credible sources of health information, and the majority (83%) believe that their pharmacist's recommendations are important to them.
• Trust in local pharmacists remains high (81%) among consumers, and 88% also believe pharmacists are the most accessible and frequently visited health care providers.
• Consumers don't want a digital-only experience – 70% of those surveyed prefer in-person interactions, and nearly half (48%) said they would likely switch their pharmacy if they knew they were only ever able to interact with their pharmacist digitally.

Pharmacy models must change

The Rx Report explores challenges the community pharmacy industry is facing, including impact of the decades-old pharmacy reimbursement model, which typically follows a market-basket approach, based on discounts from multiple industry benchmarks that may not be closely connected to how much it costs to purchase a drug. It's why CVS Pharmacy® is bringing much-needed simplicity to the model with a new approach called CVS CostVantage, which is based on a transparent formula built on the underlying cost of the drug, plus a dispensing fee tied to the care and value CVS Pharmacy provides. Altogether, the model aims to help ensure a viable and sustainable business over the long-term.

Community pharmacy can better support pharmacy teams

The Rx Report emphasizes the importance of making community pharmacy a better place to work and empowering pharmacy teams to focus more on their purpose of providing care in their community. While the majority (69%) of those who work in community, mail or online pharmacy are satisfied with their jobs, the pressures and challenges experienced by pharmacists and pharmacy technicians during the pandemic exacerbated long-standing issues in pharmacy. It's why many community pharmacies, including CVS Pharmacy, are investing in the workplace and workforce and introducing new ways of working that support pharmacy teams and enable high quality care consumers want.

Inspiring the next generation of pharmacy teams

Although demand for community pharmacies is high and their positive impact on Americans as accessible and frequently visited health care providers is significant, enrollment in pharmacy school has been down by more than 29% in the last five years. To address declining pharmacy school enrollment, community pharmacies must invest in the future workforce through innovative programs and key professional development opportunities. This includes leading tuition reimbursement and scholarship programs offered by CVS Pharmacy.

The Rx Report finds that community pharmacies are integral to public health and a critical part of local access to health care nationwide. But as the marketplace rapidly evolves, the industry must keep pace and adapt. CVS Health is committed to continuing to transform pharmacy, addressing industry challenges and elevating the important role of pharmacy teams.

Download and read the full report at www.cvshealth.com/rx-report.

^*Morning Consult Survey Methodology
This survey was conducted online by Morning Consult between July 1 – July 26, 2024, among a sample of 1,000 pharmacists, 53 pharmacy technicians, and 2,201 general consumers in the United States. The data from the pharmacist and pharmacy technicians were left unweighted, while the data from general consumers were weighted to approximate a target sample of U.S. adults based on age, gender, race/ethnicity, region, and educational attainment.

About CVS Health
CVS Health® is the leading health solutions company, delivering care like no one else can. We reach more people and improve the health of communities across America through our local presence, digital channels and over 300,000 dedicated colleagues – including more than 40,000 physicians, pharmacists, nurses and nurse practitioners. Wherever and whenever people need us, we help them with their health – whether that's managing chronic diseases, staying compliant with their medications or accessing affordable health and wellness services in the most convenient ways. We help people navigate the health care system – and their personal health care – by improving access, lowering costs and being a trusted partner for every meaningful moment of health. And we do it all with heart, each and every day. Follow @CVSHealth on social media. 

Media Contact

Amy Thibault
401-318-2865
Amy.Thibault@CVSHealth.com 

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SOURCE CVS Health

FAQ

What are the key findings of CVS Health's Rx Report on community pharmacy transformation?

The Rx Report reveals that 76% of consumers have active prescriptions, 81% trust their local pharmacist, 83% value pharmacist recommendations, and 70% prefer in-person interactions over digital-only experiences in pharmacies.

How is CVS Health (CVS) addressing pharmacy reimbursement challenges?

CVS Health is introducing CVS CostVantage, a new transparent reimbursement model based on the underlying cost of the drug plus a dispensing fee tied to the care and value provided by CVS Pharmacy.

What issue is the pharmacy industry facing regarding future workforce?

The pharmacy industry is facing a 29% decline in pharmacy school enrollment over the last five years, which CVS Health aims to address through innovative programs and professional development opportunities.

How do consumers perceive pharmacists according to the CVS Health survey?

According to the survey, 80% of consumers believe pharmacists are among the most credible sources of health information, and 88% view them as the most accessible and frequently visited healthcare providers.