CVS Pharmacy: Difference between revisions
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{{Infobox company |
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| name = CVS Pharmacy |
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| logo = [[File:CVS Pharmacy Logo.svg|230px|CVS Pharmacy logo]] |
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| caption = |
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| type = [[Subsidiary]] |
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| genre = |
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| fate = |
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| predecessor = |
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| successor = |
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| foundation = [[Lowell, Massachusetts]], [[United States|U.S.]] ({{Start date|1963|05|08}}) |
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| founder = Stanley and Sidney Goldstein <br /> Ralph Hoagland |
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| defunct = |
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| location = {{nowrap|[[Woonsocket, Rhode Island]], [[United States|U.S.]]}} |
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| locations = 7,400 CVS/pharmacy® retail stores (2012)<ref name="CVS-Caremark-Feb-2013-10-K">{{cite web|url=http://pdf.secdatabase.com/2440/0001104659-13-011354.pdf |title=CVS Caremark, Form 10-K, Annual Report, Filing Date Feb 15, 2013 |publisher=secdatabase.com |accessdate =Mar 29, 2013}}</ref> |
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| area_served = Nationwide |
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| key_people = |
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| industry = Retail |
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| products = |
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| services = |
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| revenue = {{profit}} [[United States dollar|US$]]55.663 billion (2009) |
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| operating_income = {{profit}} [[United States dollar|US$]]2.019 billion (2009) |
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| net_income = {{profit}} [[United States dollar|US$]]1.660 billion (2009) |
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| aum = |
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| assets = |
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| equity = |
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| owner = |
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| num_employees = 80,000 (2005) |
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| parent = [[CVS Caremark|CVS Caremark Corporation]] |
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| divisions = |
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| subsid = |
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| traded_as = |
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| homepage = {{URL|cvs.com}} |
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| footnotes = |
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| intl = no |
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}} |
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'''CVS Pharmacy''' (styled as '''CVS/pharmacy''' or simply '''CVS''') is the largest pharmacy [[chain store|chain]] in the United States,<ref>[http://cvspharmacylocations.org/ CVS Pharmacy Locations]. CVS Pharmacy Locations. Retrieved on 2013-09-05.</ref> with more than 7,400 stores,<ref>[http://info.cvscaremark.com/our-company/history Company History | CVS Caremark]. Info.cvscaremark.com. Retrieved on 2013-09-05.</ref> and is the largest US pharmacy based on total prescription revenue.<ref>[http://info.cvscaremark.com/our-company/cvscaremark-at-glance CVS Caremark at a Glance | CVS Caremark]. Info.cvscaremark.com. Retrieved on 2013-09-05.</ref> As the retail pharmacy division of [[CVS Caremark]], it ranks as the 13th largest company in the world according to [[Fortune 500]] in 2013.<ref>[http://money.cnn.com/magazines/fortune/fortune500/2013/full_list/index.html?iid=F500_sp_full Fortune 500 2013: Full List - Fortune]. Money.cnn.com. Retrieved on 2013-09-05.</ref> CVS Pharmacy's leading competitor [[Walgreens]] ranked 37th. |
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CVS sells prescription drugs and a wide assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photo finishing services, seasonal merchandise, greeting cards, and convenience foods through their CVS Pharmacy and [[Longs Drugs]] retail stores and online through CVS.com. It also provides healthcare services through its more than 600 [[MinuteClinic]] medical clinics <ref>http://www.delawareonline.com/article/20130217/BUSINESS13/302170017/Wal-Mart-medical-clinics-trail-CVS</ref> as well as their Diabetes Care Centers. Most of these clinics are located within CVS stores. |
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CVS is [[Delaware Corporation|incorporated in Delaware]], and is based in [[Woonsocket, Rhode Island]].<ref name="wpri.com">[http://www.wpri.com/dpp/news/cvs-to-lay-off-150-people-in-woonsocket WPRI - CVS to lay off 150 people in Woonsocket, 300 nationwide]. WPRI.com (2010-10-28). Retrieved on 2013-09-05.</ref> As of 2008, CVS Caremark was the largest for-profit employer in Rhode Island.<ref name="wpri.com"/> It was founded on Merrimack Street in [[Lowell, Massachusetts]] in 1963, under the name Consumer Value Store.<ref>[http://www.lowellma.gov/depts/dpd/services/econdev/lowell-did-you-know Lowell - Did you know? —]. Lowellma.gov. Retrieved on 2013-09-05.</ref> It was founded by Sid Goldstein, Stanley Goldstein, and Ralph Hoagland, as a discount health and beauty aid store. The first customers were required to bag their own purchases.<ref name="fundinguniverse.com">[http://www.fundinguniverse.com/company-histories/cvs-corporation-history/ History of CVS Corporation – FundingUniverse]. Fundinguniverse.com. Retrieved on 2013-09-05.</ref> |
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==Name== |
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[[image:CVS.jpg|thumb|right|250px|A newer CVS Pharmacy storefront in [[St. Louis, Missouri]].]] |
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CVS Pharmacy used to be a subsidiary of [[Melville Corporation]], where its full name was initially '''Consumer Value Stores'''. Melville later changed its name to CVS Corporation in 1996<ref name="fundinguniverse.com"/><ref name="CVS-Caremark-Jun-1996-8-K">{{cite web|url=http://edgar.secdatabase.com/154/95010396000923/filing-main.htm |title=CVS Caremark, Form 8-K, Current Report, Filing Date Jun 7, 1996 |publisher=secdatabase.com |accessdate =Mar 29, 2013}}</ref> after Melville sold off many of its non-pharmacy stores.<ref name="CVS-Caremark-Dec-1996-8-K">{{cite web|url=http://edgar.secdatabase.com/479/95010396001248/filing-main.htm |title=CVS Caremark, Form 8-K, Current Report, Filing Date Dec 6, 1996 |publisher=secdatabase.com |accessdate =Mar 29, 2013}}</ref> The last of its non-drugstore operations were sold in 1997.<ref name="fundinguniverse.com"/> |
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Former CEO [[Thomas Ryan (businessman)|Tom Ryan]] has said he now considers "CVS" to stand for "Customer, Value, and Service".<ref>{{cite news |url=http://privatelabelmag.com/pdf/jan_2006/Ryan-Preaches-PL-to-CVS-Team.cfm |title=Ryan Preaches PL to CVS Team |first=Peter |last=Berlinski |work=Private Label Magazine |date=January/February 2006 |accessdate=2008-03-03 |
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}}</ref> |
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During the company's days as a regional chain in the Northeast, many CVS stores did not include pharmacies. Today the company seldom builds new stores without pharmacies and outside of [[New England]] is gradually phasing out any such shops. Any new non-pharmacy store is usually built in a more urban setting where another CVS with a pharmacy exists within walking distance such as downtown [[Boston, Massachusetts|Boston]] or [[Providence, Rhode Island|Providence]]. These stores usually lack a pharmacy and a photo center but carry most of the general merchandise items that a normal CVS Pharmacy carries such as health and beauty items, sundries, and food items. |
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==Acquisitions and growth== |
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[[Image:CVSFormerEckerds.JPG|thumb|250px|A CVS Pharmacy (Store #6240) in [[Southside Place, Texas]] ([[Greater Houston]]) that was formerly an [[Eckerd Corporation|Eckerd]].]] |
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[[Image:2008-08-04 CVS Pharmacy in Durham.jpg|thumb|250px|A CVS Pharmacy, in [[Durham, North Carolina]].]] |
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===1960s=== |
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The CVS name was used for the first time in 1964. That year, they had 17 retail locations, and 40 stores only five years later.<ref name="hoovers.com">[http://www.hoovers.com/company/CVS_Caremark_Corporation/rfsxci-1-1njhxk.html CVS Caremark Corporation | Company profile from Hoover's | 401-765-1500]. Hoovers.com (2010-10-21). Retrieved on 2013-09-05.</ref> |
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In 1967, CVS began operation of its first stores with pharmacy departments, opening locations in [[Warwick, Rhode Island|Warwick]] and [[Cumberland, Rhode Island|Cumberland]], [[Rhode Island]]. CVS was acquired by the now-defunct [[Melville Corporation]] in 1969, boosting its growth. |
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===1970s=== |
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In 1972, CVS acquired 84 Clinton Drug and Discount stores, which introduced CVS to Indiana and the Midwest. By 1974, CVS had 232 stores and sales of $100 million. In 1977, CVS acquired the 36-store New Jersey-based Mack Drug chain.<ref name="hoovers.com"/> |
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By 1970, CVS operated 100 stores in [[New England]] and the Northeast. |
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===1980s=== |
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The chain had more than 400 stores by 1981. Sales reached $1 billion in 1985, partly due to the pharmacies being added to many of CVS's older stores.<ref name="hoovers.com"/> |
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In 1980, CVS became the 15th largest pharmacy chain in the U.S. with 408 stores and $414 million in sales. In 1988, CVS celebrated its 25th anniversary, finishing the year with nearly 750 stores and sales of about $1.6 billion. |
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===1990s=== |
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In 1990, CVS acquired the 490-store [[Peoples Drug]] chain from Imsco, which established the company in new mid-Atlantic markets including Washington, D.C., Pennsylvania, Maryland, and Virginia. In 1994, CVS started PharmaCare Management Services. The parent company decided to focus on CVS in 1995, selling off Marshalls and This End Up. The following year, they let go of Footaction/Footstar, Meldisco, Linens 'n' Things, and Kay-Bee Toys, and the company changed its name from Melville Corporation to CVS Corporation. In 1997, Bob's Stores were also sold, and CVS nearly tripled its 1,400 stores after purchasing the 2,500-store [[Revco]] chain. CVS bought 200 Arbor Drugs locations in 1998, opened approximately 180 new stores, closed about 160 stores, and relocated nearly 200 existing stores from strip malls to freestanding locations. In 1999, CVS acquired Soma.com, the first [[online pharmacy]], and renamed it CVS.com. The same year, CVS launched their CVS ProCare Pharmacy for complex drug therapies.<ref name="hoovers.com"/> |
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In 1990, CVS bought the 23-store Rix Dunnington chain. In 1993, CVS withdrew from the southern California market. Formerly traded as MVL on the [[New York Stock Exchange]], the company now trades as CVS. |
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===2000s=== |
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CVS bought Stadtlander Pharmacy of Pittsburgh from Bergen Brunswig/AmerisourceBergen in 2000.<ref name="hoovers.com"/><ref name="CVS-Caremark-Nov-2000-10-Q">{{cite web|url=http://edgar.secdatabase.com/1260/91205700049898/filing-main.htm |title=CVS Caremark, Form 10-Q, Quarterly Report, Filing Date Nov 14, 2000 |publisher=secdatabase.com |accessdate =Mar 29, 2013}}</ref> As of December 2009, CVS Caremark had over 7,000 locations.<ref name="CVS-Caremark-Feb-2010-10-K">{{cite web|url=http://pdf.secdatabase.com/133/0001193125-10-043086.pdf |title=CVS Caremark, Form 10-K, Annual Report, Filing Date Feb 26, 2010 |publisher=secdatabase.com |accessdate =Mar 29, 2013}}</ref> |
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* In 2004, CVS purchased 1,268 [[Eckerd Corporation|Eckerd]] drug stores and Eckerd Health Services, a PBM/mail-order pharmacy business, from [[J. C. Penney]].<ref name="CVS-Caremark-Apr-2004-8-K">{{cite web|url=http://pdf.secdatabase.com/58/0000950103-04-000504.pdf |title=CVS Caremark, Form 8-K, Current Report, Filing Date Apr 6, 2004 |publisher=secdatabase.com |accessdate =Mar 29, 2013}}</ref> Most of the former Eckerd stores, which were converted to CVS stores by June, are located in [[Florida]], [[Texas]], and other [[Southern United States|southern states]]. Because J. C. Penney credit cards were accepted at Eckerd locations, CVS continues to accept them as well. |
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* On January 23, 2006, CVS announced that it had agreed to acquire the freestanding drug store operations of supermarket chain [[New Albertsons|Albertsons]].<ref name="CVS-Caremark-Jun-2006-8-K">{{cite web|url=http://pdf.secdatabase.com/2483/0001193125-06-140738.pdf |title=CVS Caremark, Form 8-K, Current Report, Filing Date Jun 30, 2006 |publisher=secdatabase.com |accessdate =Mar 29, 2013}}</ref> The deal included the acquisition of 700 drug stores trading under the [[Osco Drug]] and [[Sav-On Drugs]] banners, mostly in the midwestern and southwestern United States (with a concentration of stores in southern California and the Chicago area), and was formally completed on June 2, 2006.<ref name="CVS-Caremark-Aug-2006-8-K/A">{{cite web|url=http://edgar.secdatabase.com/235/119312506165481/filing-main.htm |title=CVS Caremark, Form 8-K/A, Filing Date Aug 8, 2006 |publisher=secdatabase.com |accessdate =Mar 29, 2013}}</ref> Transition of Sav-On and Osco stores to the CVS brand was completed by December 2006. CVS now dominates the southern California market. Also included were [[New Albertsons|Albertsons]] Health'n'Home (now CVS Home Health) durable medical equipment stores. Approximately 28 CVS Home Health locations are present in Arizona, California, and the Kansas City area, representing CVS's first venture into the specialized DME market.<br>CVS had previously operated stores in southern California, but completely withdrew from the market in 1993. CVS sold virtually all of the locations to Sav-On's then owner [[American Stores]], who operated them under the name American Drug Stores. Many of the stores CVS gained in January 2006 had been the stores it owned prior to 1993. Before their re-acquisition, these stores were operated under the name Sav-On Express (the Express name was used to help customers identify these stores that did not carry all the lines of merchandise as compared to the larger, traditional Sav-On Drugs locations). CVS now operates over 6,200 stores in 43 states and the [[District of Columbia]].<ref>{{cite press release |
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|url=http://phx.corporate-ir.net/phoenix.zhtml?c=183405&p=irol-newsArticle&ID=962787 |title=CVS to Postpone Shareholder Meeting to Vote on Caremark Merger |publisher=CVS Caremark |
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|accessdate=2008-03-03}}</ref> In some locations CVS now has two stores less than two blocks apart. |
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[[File:CVS Pharmacy Alt Logo.svg|thumb|right|Alternative logo of CVS Pharmacy]] |
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* On July 13, 2006, CVS announced that it had entered into a definitive agreement to acquire Minneapolis-based [[MinuteClinic]], the pioneer and largest provider of retail-based health clinics in the U.S. MinuteClinic operates as a wholly owned subsidiary of CVS Corporation. MinuteClinic health care centers are staffed by board-certified nurse practitioners and physician assistants who are trained to diagnose and treat common family illnesses such as throat, ear, eye, sinus, bladder, and bronchial infections, and provide prescriptions when clinically appropriate. MinuteClinic also offers common vaccinations, such as flu shots, tetanus, and Hepatitis A & B. The clinics are supported by physicians who collaborate with the staff. There are over 550 locations across the United States, most of which are within CVS Pharmacy locations. |
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* On November 1, 2006, CVS announced that it was entering into a purchase agreement with Nashville-based Caremark Rx Inc., a pharmacy benefits manager. The new company is called ''[[CVS Caremark|CVS Caremark Corporation]]'' and the corporate headquarters remains in Woonsocket, Rhode Island. The new pharmacy services business, including the combined pharmacy benefits management (PBM), specialty pharmacy, and disease management businesses, is headquartered in Nashville, Tennessee. The new CVS Caremark Corporation is expected to achieve about $75 billion in yearly revenue for 2007. The merger was formally completed on March 22, 2007.<ref name="CVS-Caremark-Mar-2007-8-K">{{cite web|url=http://pdf.secdatabase.com/1280/0000950103-07-000726.pdf |title=CVS Caremark, Form 8-K, Current Report, Filing Date Mar 23, 2007 |publisher=secdatabase.com |accessdate =Mar 29, 2013}}</ref> Tom Ryan, CVS's Chairman and CEO, remains president and CEO of the combined company, while Caremark's President and CEO, Mac Crawford, is Chairman of the Board.<ref name="CVS-Caremark-Mar-2007-8-K">{{cite web|url=http://edgar.secdatabase.com/1280/95010307000726/filing-main.htm |title=CVS Caremark, Form 8-K, Current Report, Filing Date Mar 23, 2007 |publisher=secdatabase.com |accessdate =Mar 29, 2013}}</ref> |
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* On November 7, 2007, Mac Crawford stepped down as Chairman of the Board for CVS Caremark. He was replaced by President and CEO of CVS Caremark, Tom Ryan.<ref name="CVS-Caremark-Nov-2007-8-K">{{cite web|url=http://edgar.secdatabase.com/256/95010307002701/filing-main.htm |title=CVS Caremark, Form 8-K, Current Report, Filing Date Nov 7, 2007 |publisher=secdatabase.com |accessdate =Mar 29, 2013}}</ref> |
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* On August 12, 2008, CVS Pharmacy announced that it would acquire [[Longs Drugs]] for $2.9 billion. Walgreens made a counteroffer, but dropped it. The deal closed October 30, 2008.<ref name=MarketWatchLongs/><ref name="CVS-Caremark-Oct-2008-8-K">{{cite web|url=http://edgar.secdatabase.com/1480/95010308002592/filing-main.htm |title=CVS Caremark, Form 8-K, Current Report, Filing Date Oct 20, 2008 |publisher=secdatabase.com |accessdate =Mar 29, 2013}}</ref> |
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===2010s=== |
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In 2012, CVS Caremark received 59 percent of Rhode Island's tax credits.<ref>[http://www.politifact.com/rhode-island/statements/2013/feb/24/gary-sasse/gary-sasse-says-90-percent-35-million-tax-credits-/ PolitiFact Rhode Island | Gary Sasse says 90 percent of $35 million in tax credits went to CVS and two out-of-state companies]. Politifact.com. Retrieved on 2013-09-05.</ref> |
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===Online=== |
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The domain ''cvs.com'' attracted at least 26 million visitors annually by 2008 according to a [[Compete.com]] survey.<ref>[http://siteanalytics.compete.com/cvs.com?metric=uv cvs.com UVs for July 2013 | Compete]. Siteanalytics.compete.com (2011-10-26). Retrieved on 2013-09-05.</ref> |
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CVS no longer owns the soma.com domain name, which it acquired with the purchase of online drugstore pioneer Soma. The domain name now belongs to a lingerie retailer. |
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CVS uses online training methods to train most of their employees and uses the website cvslearnet.cvs.com. |
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By 2004, all CVS stores were able to receive electronic prescriptions.<ref>http://www.surescripts.com/news-and-events/press-releases/2009/october/rhode-island-announces.aspx</ref> |
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==Environmental record== |
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In 2005, CVS participated in a program to reduce the pollution of Maine's waterways. CVS agreed to accept drugs for disposal, so that people would not dispose of them in ways that reach rivers and other bodies of waters.<ref>"[http://www.ens-newswire.com/ens/feb2005/2005-02-09-09.asp Maine's First Drug Take Back Keeps Waterways Cleaner]", ''Environment News Service'', February 9, 2005. Retrieved May 8, 2008.</ref><ref>"[http://www.nerc.org/documents/bulletin/20050101.html#4 CVS Pharmacy Plans Drug Collection for S. Portland, Maine]",''NERC Email Bulletin'', January 2005. Retrieved May 16, 2008.</ref><ref>"[http://www.erosioncontrol.com/mw_0606_cleaning.html Cleaning Up Medical Waste]", ''MSW Management'', Elements 2007, Vol. 16, No. 4. Retrieved May 16, 2008</ref> |
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In 2013, CVS agreed to pay Connecticut $800,000 due to alleged mismanagement of hazardous waste. The Connecticut Department of Energy and Environmental Protection agency found that CVS had improperly identified, managed, and disposed of hazardous materials.<ref>[http://www.countytimes.com/articles/2013/01/29/business/doc510840f9928ef331292133.txt CVS Paying Connecticut $800,000 for Hazardous Waste Issues; Southbury Store Cited - Business - The Litchfield County Times]. Countytimes.com (2013-01-29). Retrieved on 2013-09-05.</ref> |
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==Controversies== |
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[[Image:CVSAustinTexasRetro.JPG|thumb|A CVS location (#7606) in [[Austin, Texas]], across from the [[University of Texas at Austin]]]] |
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===$2.25 million HIPAA Privacy Case=== |
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CVS was required to pay the United States government $2.25 million in 2009 for violations of the Health Insurance Portability and Accountability Act of 1996 ([[HIPAA]]) Privacy Rule. The U.S. Department of Health and Human Services Office for Civil Rights ([[U.S. Department of Health and Human Services|OCR]]) and the Federal Trade Commission ([[Federal Trade Commission|FTC]]) found that CVS did not appropriately dispose of sensitive patient information or provide the necessary training on disposal to their employees.<ref>[http://www.hhs.gov/news/press/2009pres/02/20090218a.html CVS Pays $2.25 Million and Toughens Practices to Settle HIPAA Privacy Case]. Hhs.gov (2011-05-07). Retrieved on 2013-09-05.</ref> |
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===Executives accused of bribing state senator=== |
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Former CVS executives John R. Kramer and Carlos Ortiz were charged with bribery, conspiracy, and fraud (including mail fraud) by a federal grand jury for allegedly paying State Senator John A. Celona (D-RI) to act as a "consultant" for the company. Between February 2000 and September 2003, CVS paid Celona $1,000 a month, and he received tickets to golf outings and sporting events and compensation for travel to Florida and California. In August 2005, he pleaded guilty to mail fraud charges, and in January 2007, he was fined a record $130,000 by the Rhode Island Ethics Committee. The investigation was led by the FBI and the Rhode Island State Police, and the case was prosecuted by Assistant U.S. Attorneys Gerard B. Sullivan and Dulce Donovan. Additional information is available in a press release from the FBI's Boston field office.<ref>{{cite press release |url=http://boston.fbi.gov/dojpressrel/pressrel07/bribery011807.htm |title=Two CVS executives are accused of paying State Senator John Celona to advance the drug company's legislative agenda |publisher= [[U.S. Department of Justice]] |
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|date=2007-01-18 |accessdate=2008-02-25}}</ref> |
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===Prescription errors=== |
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During 2005, a rash of prescription mistakes came to light in some of CVS Corporation's Boston-area stores. An investigation confirmed 62 errors or quality problems going back to 2002. In February 2006, the state Board of Pharmacy announced that the non-profit Institute of Safe Medication Practices (ISMP) would monitor all Massachusetts stores for the next two years.<ref>{{cite news |url=http://www.boston.com/business/healthcare/articles/2006/02/10/cvs_faces_pharmacy_reviews/ |title=CVS faces pharmacy reviews |
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|first=Christopher |last=Rowland |work=[[Boston Globe]] |date=2006-02-10 |accessdate=2008-02-25}}</ref> Later, a 2007 segment on ''[[20/20 (US television series)|20/20]]'' accused CVS, [[Walgreens]] and [[Rite Aid]] among other pharmacies, of making various prescription dispensing errors. This segment aired in March 2007 and was called "ABC News '20/20' Undercover Pharmacy Investigation". CVS responded by claiming they have designed and invested millions of dollars in a comprehensive quality assurance program.<ref>{{cite news |
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|url=http://blogs.abcnews.com/theblotter/2007/03/drugstores_resp.html |title=Drugstores Respond to '20/20' |work=The Blotter |publisher= [[ABC News]] |date=2007-03-30 |accessdate=2008-02-25}}</ref> |
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===Texas lawsuit over illegally dumping patient information=== |
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Texas Attorney General Greg Abbott sued CVS in April 2007, for illegally dumping confidential patient information while closing an acquired Eckerd store in [[Liberty, Texas]]. CVS is accused of breaking the 2005 Identity Theft Enforcement and Protection Act. There are also other possible violations under the violations under Chapter 35 of the Business and Commerce Code.<ref>{{cite news |url=http://www.dallasnews.com/sharedcontent/dws/bus/stories/041807dnbuscvsrecords.185450c.html |title=CVS accused of dumping Texas customers' records |
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|work=[[Associated Press|AP]]/[[The Dallas Morning News|Dallas Morning News]] |date=2007-04-17 |accessdate=2008-02-25}}</ref> CVS settled by paying $315,000 to the state and agreeing to overhaul its information security system.<ref name="bg11">{{cite news|url=http://www.boston.com/news/local/rhode_island/articles/2008/03/26/cvs_texas_settle_lawsuit_over_dumping_customers_records/|title=CVS, Texas settle lawsuit over dumping customers' records|last=Porretto|first=John|date=March 26, 2008|work=Boston Globe|accessdate=30 July 2010}}</ref> |
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===Cigarette sales=== |
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In common with other US pharmacies, CVS stocks cigarettes for sale to the public. Some campaigners in the USA advocate the [[Tobacco-Free Pharmacies|removal of tobacco from pharmacies]] due to the [[Health effects of tobacco|health risks associated with smoking]] and the apparent contradiction of selling cigarettes alongside [[smoking cessation]] products and [[asthma medication]].<ref name=ANR>{{cite web|title=Tobacco-Free Pharmacies|url=http://www.no-smoke.org/learnmore.php?id=615|work=Americans for Nonsmokers' Rights|accessdate=18 July 2013}}</ref> CVS and other pharmacies who continue to sell tobacco products have been subject to criticism, and attempts have been made to introduce regional bans on the practice, notably by the [[San Francisco|City and County of San Francisco]].<ref>{{Cite news| last = Rubenstein| first = Sarah| title = Cigarette Sales in Drugstores Come Under Fire| newspaper = [[The Wall Street Journal]]| date = July 29, 2008| url = http://blogs.wsj.com/health/2008/07/29/cigarette-sales-in-drugstores-come-under-fire/| accessdate = April 16, 2011}}</ref><ref>{{Cite news| last = Hussar, PhD| first = Daniel A.| title = Pharmacy cigarette sales must end| newspaper = Modern Medicine| date = March 1, 2009 | url = http://drugtopics.modernmedicine.com/drugtopics/Modern+Medicine+Now/Pharmacy-cigarette-sales-must-end/ArticleStandard/Article/detail/585685 | accessdate = April 16, 2011}}</ref> |
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In 2007, CEO Thomas Ryan stated that the company was considering halting the sale of [[cigarettes]] within its pharmacies, acknowledging that the issue was problematic for the company, but has not done so, citing internal market research that discovered ceasing cigarette sales will not change consumer behaviour (of buying cigarettes).<ref>{{Cite news| last = Berkrot| first = Bill| title = CVS wrestles with cigarette sales |
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| newspaper = [[Reuters]] | date = November 14, 2007| url = http://www.reuters.com/article/2007/11/14/us-cvs-wrestles-with-cigarette-sales-idUSHO48508920071114| accessdate = April 16, 2011}}</ref> |
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===Deceptive business practices=== |
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[[Image:West Hollywood - La Cienega Blvd.JPG|thumb|left|A CVS store in [[West Hollywood, California]].]] |
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In February 2008, CVS settled a large civil lawsuit for deceptive business practices. The [[Kaiser Family Foundation]] reported:<ref>{{cite web |url=http://www.kaisernetwork.org/daily_reports/rep_index.cfm?DR_ID=50454 |title=CVS Caremark Agrees To Pay $38.5M To Settle Allegations That It Did Not Pass on Rebates, Discounts to Patients, Employers |work=Kaiser Daily Health Policy Report |publisher=[[Kaiser Family Foundation]] |date=2008-02-15 |accessdate=2008-02-25}}</ref><!-- a non-copyrighted, "free service of the Henry J. Kaiser Family Foundation", so extensive quoting should be OK --> |
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<blockquote>CVS Caremark has agreed to a $38.5 million settlement in a multi-state civil deceptive-practices lawsuit against pharmacy benefit manager Caremark filed by 28 attorneys general, the ''[[Chicago Tribune]]'' reports.<ref name="miller">{{cite news |url=http://www.chicagotribune.com/business/chi--cvs-carmark-settlement-feb14,0,7852078.story |title=CVS Caremark settles deceptive-practices complaint for $38.5 million |first=James P. |last=Miller |work=[[Chicago Tribune]] |date=2008-02-14 |accessdate=2008-02-25}}</ref> The attorneys general, led by Lisa Madigan (D) of Illinois and Douglas Ganslar (D) of Maryland, allege that Caremark "engaged in deceptive business practices" by informing physicians that patients or health plans could save money if patients were switched to certain brand-name prescription drugs (Miller, ''Chicago Tribune'', 2/14).<ref name="miller"/></blockquote> |
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<blockquote>However, the switch often saved patients and health plans only small amounts or increased their costs, while increasing Caremark's profits, Connecticut Attorney General Richard Blumenthal (D) said (Levick, ''[[Hartford Courant]]'', 2/15).<ref name="levick">{{cite news |url=http://www.courant.com/business/hc-caremark0215.artfeb15,0,3595370.story |
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|title=Caremark Settles States' Probe |first=Diane |last=Levick |work=[[Hartford Courant]] |date=2008-02-15 |accessdate=2008-02-25}}</ref> Pennsylvania Attorney General Tom Corbett (R) said the PBM kept discounts and rebates that should have been passed on to employers and patients (Levy, ''[[Associated Press|AP]]/[[San Francisco Chronicle]]'', 2/14).<ref name="levy">{{cite news |url=http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/02/14/state/n134614S07.DTL |title=Caremark to pay $38M to settle drug-switching complaint |
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|first=Marc |last=Levy |work=[[Associated Press|AP]]/[[San Francisco Chronicle]] |date=2008-02-14 |accessdate=2008-02-25|archiveurl = http://web.archive.org/web/20080611191514/http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/02/14/state/n134614S07.DTL <!-- Bot retrieved archive --> |archivedate = 2008-06-11}}</ref> In addition, Caremark did not "adequately inform doctors" of the full financial effect of the switch and did not disclose that the switch would increase Caremark's profits, the lawsuit alleges (''Chicago Tribune'', 2/14).<ref name="miller"/></blockquote> |
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<blockquote>...The settlement prohibits Caremark from requesting prescription drug switches in certain cases, such as when the cost to the patient would be higher with the new prescription drug; when the original prescription drug's patent will expire within six months; and when patients were switched from a similar prescription drug within the previous two years (''Hartford Courant'', 2/15).<ref name="levick"/> Patients also have the ability to decline a switch from the prescribed treatment to the prescription offered by the pharmacy under the settlement, Madigan said (''[[Bloomberg News]]/[[Philadelphia Inquirer]]'', 2/15).<ref name="levy">{{cite news |url=http://www.philly.com/philly/business/15659572.html |
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|title=CVS to pay millions to settle drug-cost case |first=Andrew |last=Harris |work=[[Bloomberg News]]/[[Philadelphia Inquirer]] |date=2008-02-15 |accessdate=2008-02-25}} {{Dead link|date=September 2010|bot=H3llBot}}</ref></blockquote> |
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===Methamphetamine lawsuit=== |
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[[File:Cvs1.jpg|thumb|A CVS location in [[Macomb, Illinois]], formerly an [[Osco Drug|Osco]].]] |
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On October 14, 2010, CVS was ordered to pay 77.6 million dollars in fines and returned profits stemming from [http://www.pharmacyerrorlawfirm.com/blog/florida-pharmacies-under-fire-for-refusing-to-fill-painkiller-medications.cfm a lawsuit alleging improper control in the sale of an ingredient] used to make methamphetamine.<ref>{{cite news |url=http://money.cnn.com/2010/10/14/news/companies/cvs_meth/index.htm?hpt=T1 |title=CVS to pay $77.6 million in meth case |work=[[CNN]] |
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|date=14-Oct-2010 |accessdate=14-Oct-2010 |first=Blake |last=Ellis}}</ref> CVS will forfeit 2.6 million in profits from the illegal sale of pseudoephedrine as well as have to pay a fine of 75 million dollars, the largest civil penalty ever paid under the [[Controlled Substances Act]].{{Citation needed|date=August 2012}} |
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===DEA investigation into oxycodone diversion=== |
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{{see also|Drug diversion}} |
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According to the US Justice Department, last year{{When|date=July 2013}} CVS pharmacies in Sanford, Florida ordered enough painkillers to supply a population eight times its size. Sanford has a population of 53,000 but the supply would support 400,000.<ref>{{cite news| url=http://www.bloomberg.com/news/2012-02-29/cardinal-health-blocked-from-shipping-painkiller-in-florida-1-.html | work=Bloomberg | first=Tom | last=Schoenberg | title=Cardinal Health Blocked From Shipping Painkiller in Florida | date=2012-02-29}}</ref> According to the [[Drug Enforcement Administration]], in 2010 a single CVS pharmacy in Sanford ordered 1.8 million Oxycodone pills, an average of 137,994 pills a month. Other pharmacy customers in Florida averaged 5,364 oxycodone pills a month. DEA investigators serving a warrant to a CVS pharmacy in Sanford on Oct. 18 2011 noted that "approximately every third car that came through the drive-thru lane had prescriptions for oxycodone or hydrocodone." According to the DEA, a pharmacist at that location stated to investigators that "her customers often requested certain brands of oxycodone using street slang," an indicator that the drugs were being diverted and not used for legitimate pain management. In response, CVS in a statement issued Feb. 17 in response to opioid trafficking questions from [[USATODAY]] said the company is committed to working with the DEA and had taken "significant actions to ensure appropriate dispensing of painkillers in Florida." <ref>{{cite news| url=http://www.usatoday.com/news/nation/story/2012-02-27/painkiller-abuse-DEA/53275844/1 | work=USA Today | title=Most Popular E-mail Newsletter | date=2012-02-27}}</ref> |
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===Homeless man strangled for shoplifting=== |
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On May 8, 2010, a homeless man named Anthony Kyser was strangled to death by a CVS store manager after allegedly stealing toothpaste and crayons. Surveillance footage from an alleyway near the store was captured which shows the alleged shoplifter being forced to the ground and killed by the store manager, Pedro Villanova. Though the death was ruled a homicide by the Cook County Medical Examiner's office, no charges were filed against the manager, the authorities having ruled the incident an "accident." No investigation was made into the off-duty county officer who was on scene, but did nothing to stop the attack. U.S. Rep. Bobby Rush, who spoke out in 2010 against the way Kyser's death was handled, stated "...we have video that shows emphatically that he was lying on the ground and some people strangled him, kicked him and choked him and at the end of that episode he lay still, he was killed, right there on the spot." The video shows a police officer arrived on the scene moments after the incident occurred, however, no first aid was given to the victim. Kyser's parents filed a lawsuit claiming that the CVS manager assaulted and battered their son and that the store is responsible for that manager's actions. The lawsuit, seeking $400,000 in damages, remains pending in Cook County Circuit Court.<ref>Huffington Post (2013) Anthony Kyser Death: Video Of Alleged CVS Shoplifter's Killing Prompts Call For New Probe. Retrieved from: http://www.huffingtonpost.com/2013/01/18/anthony-kyser-death-video_n_2506106.html</ref> |
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===Racist receipt=== |
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In 2013, a Korean customer, Hyun Lee, was identified as "Ching Chong Lee" on her receipt from a CVS in New Jersey. Lee contacted CVS and received an email response saying that the employee would be "counseled and trained". According to Lee's attorney, "[The employee] should have been terminated immediately. She never got an apology. She never got anything further after she complained." On April 16, 2013, Lee filed a federal discrimination lawsuit against CVS and is seeking $1 million.<ref>Valiente, Alexa. [http://abcnews.go.com/blogs/headlines/2013/04/new-jersey-woman-sues-cvs-for-1m-for-racist-receipt/ "New Jersey Woman Sues CVS for $1M for Racist Receipt"]. abcnews.go.com. April 18, 2013. Retrieved April 18, 2013.</ref> |
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==Homeopathy== |
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On [[April Fool's Day|April 1]], 2011, the [[James Randi Educational Foundation]] awarded CVS Pharmacy the tongue-in-cheek [[Pigasus Award]] for selling [[homeopathic]] remedies alongside medicines recognized by science.<ref name="pigasus">{{cite news | url=http://www.latimes.com/health/boostershots/la-heb-dr-oz-andrew-wakefield-james-randi-awards-20110401,0,3573991.story | title=Dr. Oz, Andrew Wakefield and others, um, 'honored' by James Randi | accessdate=April 2, 2011 | author=Mestel, Rosie | date=April 1, 2011 | work=Los Angeles Times}}</ref> |
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==See also== |
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*{{Portal-inline|Rhode Island}} |
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*{{Portal-inline|Companies}} |
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==References== |
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'''Notes''' |
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{{reflist |refs= |
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<ref name=MarketWatchLongs>{{Cite news|url=http://www.marketwatch.com/news/story/CVS-Caremark-Successfully-Completes-Tender/story.aspx?guid=%7B71D4FEB0-8E9D-441B-B0DD-69DD8EE19E7C%7D |
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|title=CVS Caremark Successfully Completes Tender Offer for Longs Shares|publisher=MarketWatch|date=October 30, 2008|accessdate=November 4, 2008}}</ref> |
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}} |
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==External links== |
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{{Commons category}} |
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* [http://www.cvs.com CVS Pharmacy] |
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* [http://www.cvs.com/ CVS e-commerce site] |
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* [http://www.cvscaremark.com/ CVS Corporation site] |
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* [http://www.minuteclinic.com/ MinuteClinic site] |
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[[Category:Companies based in Rhode Island]] |
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[[Category:Pharmacies of the United States]] |
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[[Category:Retail companies established in 1963]] |
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[[Category:1963 establishments in Massachusetts]] |
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