CVS’s monopolistic type mergers that create several conflicts of interest, will be its downfall in the next 10 years. CVS tried to adopt Big Tech strategies to gain power in the health care industry. Just like the Big Tech industry is facing bipartisan legal challenges now, CVS will be next. I encourage everyone here who’s morale is down from the company’s chosen path, to understand the true circumstances that lead to the stressful work conditions we have. It is a very complex type of situation..and if we don’t articulate the why’s correctly we sound like lazy snowflakes... which distorts the truth. Start with researching and understanding the role that PBM’s are meant to play in the health care industry. (Caremark), then go from there.
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CVS consults with the management consultant firm “McKinsey.” (No “CVS Social Media Oversight team”, I’m not disclosing any company privileged info, just some publicly available online research.) McKinsey confidentially partners with companies to come up with strategies to improve financial performance for companies.
One of the ways McKinsey does this is by convincing companies to cut expenses such as employee overhead. They are distant enough from the structure of a company to not get all soft or think realistically when deciding where they can cut staff. Most of the people who work at a company like McKinsey are rich kids straight out of a prestige college who don’t even know the dynamics of a pharmacy workflow or the concept of a planogram. One of the reasons companies sometimes do this, is because of pressure from their investors. How else can you non pragmatically cut staff and get away with it through bypassing labor laws and morality?
As I’ve mentioned, McKinsey does this confidentially. The reason their contract with CVS is now part of public record is because of a....lawsuit...in which McKinsey helped pharmacies and pharmaceutical companies incentivize and accelerate the spread of O-yco–in. Even as it was already known at the time that the d–g had been responsible for hundreds of thousands of deaths. One of McKinsey’s clients in the lawsuit was CVS Health.
Caremark=PBM=Pharmacy Benefit Manager
A PBM contracts with Pharmacies and negotiates d–g pricing with d–g manufacturer. The PBM then gets a percent of that sale as payment for that process.
CVS purchased Caremark in 2006. It gives CVS the power to negotiate its own prices while also taking a cut of that self negotiated contract...while still negotiating for its competitors. (Lawsuits galore). CVS has no problem settling with several lawsuits, judges, and senators (John A Celona D-RI). Even though we don’t see this budget line in our store Profit and Loss statements, one can assume where they can cut to offset such an absurd expense.
Apparently no one. Lol. Let’s just go back to complaining about the company like its not a complex and systemic dilemma that can be solved. Here, I’ll go first... OMG can you believe they cut my hours?!?! I bet they couldn’t last a day at store level! Whaaaa!!!