CVS Health explores the ongoing transformation of community pharmacy

CVS Health 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 at 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.

[Read more: CVS Health report highlights opportunities for the future of community pharmacy]

Key findings from The Rx Report 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. 

CVS Pharmacy said it 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.