CEO Merlo Paints Picture of Health Care’s Future

Above: (CEO Merlo explains to reporters at the CEO Club event June 5 how the reinvention of pharmacy will benefit health care.)

CVS Caremark CEO Larry J. Merlo’s appearance at the Boston CEO Club on June 5 was a by the numbers affair. Four numbers in fact: 10,000; 32 million; 45,000; and 20 percent.

Merlo told a room packed with some of New England’s most prominent business leaders that rising health care costs, coupled with a health care system experiencing historic pressure and change, would pose formidable challenges for the nation.

Specifically he spoke of the 10,000 Baby Boomers that become eligible to enter an already strained Medicare system every day, the 32 million newly insured people expected under health care reform, the projected shortage of 45,000 primary care physicians by the end of this decade and the 20 percent of our GDP that will go toward health care by 2020.

“These numbers concern me, as they will force change and demand innovation in our current system,” said Merlo. “And I believe everyone in this room should think about them in terms of the impact they could potentially have on your lives and your business.”

He went on to explain that, along with the health care system, pharmacy care is also poised for significant change. And these changes will help alleviate not only the systemic pressures related to cost, quality and access, but also directly help consumers navigate the inherent complexity market forces and reform will bring.

The reinvention of pharmacy at CVS Caremark, Merlo explained, was tied to the integration of several of the company’s areas of business, specifically the retail pharmacy, the company’s MinuteClinic health clinics and CVS Caremark’s prescription benefits management division. Because pharmacists will be able to tap into the totality of resources throughout the company – like helping people take their medicines as directed and working closely with nurse practitioners in the delivery of care -- their role will continue to mature far beyond filling prescriptions, Merlo said. Pharmacists, and pharmacy care, will evolve into a new model of health care delivery that will offer innovative solutions to the as-yet-unsolved challenges facing consumers, employers and the overall system.

“As a pharmacist myself, I know the value these health care professionals can bring to the lives of patients,” concluded Merlo. “I also believe pharmacy care can make a big difference in the health, well-being and financial outlook of our country.”