Author Topic: CVS - CVS Health Corporation  (Read 40193 times)

DooDiligence

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Re: CVS - CVS Health Corporation
« Reply #130 on: November 08, 2018, 04:12:44 AM »
I was recently reminded in a post about insurance, that I didn't write anything about my visit to the Minute Clinic, so here goes.

As many of you will remember, and would like to forget, I had a stye on my eye and had visited a Baptist Hospital Urgent Care Clinic, twice, with no cure.

In the shipping world this would be a "no cure, no pay" situation but I still had to make a copay.

It finally dawned on me that this was an opportunity to experience a CVS Minute Clinic first hand.

Initially, I was underwhelmed.

I checked in through an electronic kiosk emblazoned with signs and ironically, one of the signs said that they are affiliated with Baptist Healthcare system, so I wasn't expecting my stye to get any better as a result of the visit.

Next, I looked over to the waiting room which was just a row of chairs along the back wall in a way which screamed "this is NOT a doctors office"

The "waiting room" was facing an isle of nostrums that did not instill further confidence in my upcoming medical consultation (it also did not attract me to any kind of impulse purchase.) Somehow, I believe I should have been staring at a gigantic magazine rack surrounded by a well thought out display of ???

On another note, this particular CVS location is the only Minute Clinic in Pensacola and it is a poor choice for a clinic as there are others which have layouts that would give a better "doctors office" feel (I sent a message to the BOD about this recently.)

BTW, even though the waiting area was poorly thought out, there was standing room only and a steady trickle of new patients were coming in.

The person who treated me was a PA and she was very professional and knowledgable and more importantly, she prescribed a different set of oral antibiotics and an antibio cream, which subsequently made the stye go away.

I walked straight over to the pharmacy counter and picked up my prescription.

This is not necessarily a ringing endorsement of the Minute Clinics and it is obvious from this one anecdotal experience that they have a lot of work to do.

The end?
(Healthcare 42.9% - ABC BBH CVS DVA EW NVO) | (BRK.B - 14.8%) | (Media & Communication 12.6% - CHTR CMCSA DIS)

(Drinkers & Smokers 13.8% - ABEV MO) | (Auto's & Oil 10.3% - GPC VDE) | (Tech & Comms 5.5% - AAPL SFTBY)

(%'s held @ MV 9/04, excludes $)

[prepared 2 wait?]

https://twitter.com/tunawish


Cigarbutt

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Re: CVS - CVS Health Corporation
« Reply #131 on: November 08, 2018, 05:18:16 AM »
The end?
CVS recently reported decent results with significant free cash flow generation. They seem to meet the usual acquisition hurdles and, maybe, the best is yet to come. Will watch.

They seem to have some willingness to try things.
Interesting example:
https://www.bizjournals.com/bizwomen/news/latest-news/2018/11/cvs-pharmacy-launches-pilot-membership-program.html
It smells like a reactive move to a certain competitor but reaction is probably better than inaction and a lot of first movers will fall.

For your case (if you want to disclose the info), what was your part of the bill (co-pay and deductible) and what was the total amount of the bill?

For a superficial and visually apparent condition such as yours, online consultation seems like a good option. In my area where healthcare is "free", innovation sometimes comes from the embryonic private sector. Recently, a dermatologist started to offer a consultation option based on an online platform which seems to be quite efficient (to make an appointment, list data, upload photos and virtually "meet" the specialist). The fee, which does not cover the prescription costs, is 180$ (CDN) to get an appointment within 72 hours and 250$, within 24 hours.
I understand that this is also becoming available in the Great Again country, hear that fees as low as 59$ (USD) are advertised and that CVS may have showed an interest:
https://cvshealth.com/newsroom/press-releases/cvs-healths-minuteclinic-introduces-new-virtual-care-offering

But they will have to work on their bill length.
https://nypost.com/2018/11/02/woman-gets-6-foot-cvs-receipt-after-buying-3-items/
« Last Edit: November 08, 2018, 05:23:12 AM by Cigarbutt »

DooDiligence

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Re: CVS - CVS Health Corporation
« Reply #132 on: November 08, 2018, 06:12:20 PM »
The end?
CVS recently reported decent results with significant free cash flow generation. They seem to meet the usual acquisition hurdles and, maybe, the best is yet to come. Will watch.

They seem to have some willingness to try things.
Interesting example:
https://www.bizjournals.com/bizwomen/news/latest-news/2018/11/cvs-pharmacy-launches-pilot-membership-program.html
It smells like a reactive move to a certain competitor but reaction is probably better than inaction and a lot of first movers will fall.

For your case (if you want to disclose the info), what was your part of the bill (co-pay and deductible) and what was the total amount of the bill?

For a superficial and visually apparent condition such as yours, online consultation seems like a good option. In my area where healthcare is "free", innovation sometimes comes from the embryonic private sector. Recently, a dermatologist started to offer a consultation option based on an online platform which seems to be quite efficient (to make an appointment, list data, upload photos and virtually "meet" the specialist). The fee, which does not cover the prescription costs, is 180$ (CDN) to get an appointment within 72 hours and 250$, within 24 hours.
I understand that this is also becoming available in the Great Again country, hear that fees as low as 59$ (USD) are advertised and that CVS may have showed an interest:
https://cvshealth.com/newsroom/press-releases/cvs-healths-minuteclinic-introduces-new-virtual-care-offering

But they will have to work on their bill length.
https://nypost.com/2018/11/02/woman-gets-6-foot-cvs-receipt-after-buying-3-items/

The Minute Clinic receipt was printed on an 8.5 x 11 sheet & listed a charge of $129. (my co-pay was $33.)
The prescription consisted of Tobramycin 0.3% eye drops ($12.57) & Cephalexin 500mg capsules ($4.29).

Baptist Urgent Care cost $33 x 2 & the prescription was for Bacitracin 500 unit/gm OPHTH ointment ($75 & ineffective).

---

I'm betting that CVS will be successful in the long run & will have it's ups & downs (whether the Minute Clinics will ever be anything WTFK?)
I don't need the money ATM & am feeling very patient so we'll see.
(Healthcare 42.9% - ABC BBH CVS DVA EW NVO) | (BRK.B - 14.8%) | (Media & Communication 12.6% - CHTR CMCSA DIS)

(Drinkers & Smokers 13.8% - ABEV MO) | (Auto's & Oil 10.3% - GPC VDE) | (Tech & Comms 5.5% - AAPL SFTBY)

(%'s held @ MV 9/04, excludes $)

[prepared 2 wait?]

https://twitter.com/tunawish

Cigarbutt

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Re: CVS - CVS Health Corporation
« Reply #133 on: November 08, 2018, 08:33:12 PM »
I'm betting that CVS will be successful in the long run & will have it's ups & downs (whether the Minute Clinics will ever be anything WTFK?)
I don't need the money ATM & am feeling very patient so we'll see.
Thanks for the follow-up.
20 years ago, I also bought a pharmacy retailer (one of my first stocks, pharmacy chain based in Canada) and sold it around 2004 because of a planned expansion in what I considered to be Fortress Retail, USA. Then, the #1 was Walgreens and the #2 was CVS. As 2018 nears its end, the #1 is still Walgreens and the #2 is still CVS. The more it changes... So your "bet" is reasonable for the long run to come. Fascinating though, because the parallel path is possibly reaching a juncture because the two are taking 2 fundamentally different directions.

An exercise I've done over the years is to follow the two, side by side ( la Ben Graham) and submit the following report for your interest:
https://www.fungglobalretailtech.com/wp-content/uploads/2018/08/CVS-and-Walgreens-AUG-20-2018.pdf

If I'd be a betting man, I would go with Walgreens but I'm not.

PS Bacitracin is still in use but has a nice historical feature. The drug was named because of a girl named Traci (misspelled in fact).
https://web.archive.org/web/20140428190211/https://files.nyu.edu/jmm257/public/other/bacitracin.html
Talk about an enduring moat.

DooDiligence

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Re: CVS - CVS Health Corporation
« Reply #134 on: November 09, 2018, 07:30:40 PM »
I'm betting that CVS will be successful in the long run & will have it's ups & downs (whether the Minute Clinics will ever be anything WTFK?)
I don't need the money ATM & am feeling very patient so we'll see.
Thanks for the follow-up.
20 years ago, I also bought a pharmacy retailer (one of my first stocks, pharmacy chain based in Canada) and sold it around 2004 because of a planned expansion in what I considered to be Fortress Retail, USA. Then, the #1 was Walgreens and the #2 was CVS. As 2018 nears its end, the #1 is still Walgreens and the #2 is still CVS. The more it changes... So your "bet" is reasonable for the long run to come. Fascinating though, because the parallel path is possibly reaching a juncture because the two are taking 2 fundamentally different directions.

An exercise I've done over the years is to follow the two, side by side ( la Ben Graham) and submit the following report for your interest:
https://www.fungglobalretailtech.com/wp-content/uploads/2018/08/CVS-and-Walgreens-AUG-20-2018.pdf

If I'd be a betting man, I would go with Walgreens but I'm not.

PS Bacitracin is still in use but has a nice historical feature. The drug was named because of a girl named Traci (misspelled in fact).
https://web.archive.org/web/20140428190211/https://files.nyu.edu/jmm257/public/other/bacitracin.html
Talk about an enduring moat.

Thanks, I just got through the Walgreen v CVS report (and the Tracy story.)

Hmmm...
(Healthcare 42.9% - ABC BBH CVS DVA EW NVO) | (BRK.B - 14.8%) | (Media & Communication 12.6% - CHTR CMCSA DIS)

(Drinkers & Smokers 13.8% - ABEV MO) | (Auto's & Oil 10.3% - GPC VDE) | (Tech & Comms 5.5% - AAPL SFTBY)

(%'s held @ MV 9/04, excludes $)

[prepared 2 wait?]

https://twitter.com/tunawish