Issue link: https://beckershealthcare.uberflip.com/i/1058375
31 31 CEO/STRATEGY CVS pilots membership program to take on Amazon By Ayla Ellison C VS is testing a membership program in Boston as Amazon pushes into prescrip- tion drug delivery, CNBC reported. Called CarePass, CVS' new program costs $5 monthly or $48 annually and includes free delivery on most online purchases and prescriptions, a 20 percent discount on all CVS-branded products, access to a pharma- cist helpline and a monthly $10 coupon. CVS is piloting the program as pharmacies across the nation face a major threat from Amazon, which acquired online pharmacy start-up PillPack earlier this year. Amazon entered into a definitive agreement in June to acquire PillPack, which markets it- self as a "full-service" pharmacy with a 24/7 customer service team. Amazon complet- ed the $753 million acquisition Sept. 11. Although CarePass could help CVS fight off Amazon and other threats, CVS said it launched the membership program as a way to better serve customers. "We are committed to designing and testing innovative programs that meet our custom- ers' health needs whenever, wherever and however they want," Kevin Hourican, execu- tive vice president of CVS Health and presi- dent of CVS Pharmacy, said in a press release. "e CarePass pilot program in Boston offers our customers an additional level of benefits and services that make it easy to save time, save money and receive access to on-demand pharmacy care." CVS rolled out the membership program at more than 350 stores in the Boston area and plans to expand the program nationwide. n Broward Health promotes COO to acting CEO: 6 things to know By Anuja Vaidya F ort Lauderdale, Fla.-based Broward Health appoint- ed Gino Santorio acting CEO, effective Oct. 31. Here are six things to know: 1. Mr. Santorio has served as executive vice president and COO of the health system since 2017. 2. He previously served as senior vice president and CEO of Jackson North Medical Center in North Miami Beach, Fla., and was vice president and COO of Jackson Memori- al Hospital in Miami. 3. He is a fellow of the American College of Healthcare Executives. 4. Mr. Santorio holds a master's degree in public administra- tion from the Rockefeller College of Public Affairs and Policy at the University at Albany-State University of New York. 5. He will replace Beverly Capasso, RN, who abruptly re- signed in early October. An emailed statement from the health system did not give a reason for Ms. Capasso's de- cision to step down. She will serve in a consulting role until January 2019 to ensure a smooth leadership transition. 6. Earlier Oct. 31, news broke that Broward Health's board fired its general counsel amid the significant lead- ership upheaval at the health system. Mr. Santorio is the fourth executive to lead the health system since Janu- ary 2016. Five Broward Health officials were also indict- ed in December 2017 for allegedly violating Florida's open-meeting laws. n UnitedHealth revenue soars to $57B; Optum quietly picks up pharmacy in Q3 By Morgan Haefner U nitedHealth Group posted strong results for the three months ended Sept. 30 and reported a pre- viously undisclosed acquisition of a specialty phar- macy based in Phoenix. Here are four things to know: 1. UnitedHealth's reveues grew 12.4 percent year over year to $56.6 billion in the third quarter of this year compared to the same period last year. Its earnings from operations increased 12.3 percent year over year to $4.6 billion. 2. UnitedHealthcare, the company's health insurance arm, grew to serve 2.8 million more customers in the third quar- ter of 2018 compared to the same period a year prior. This helped increase third quarter revenues 12.8 percent to $45.9 billion. Year over year, its Medicare Advantage busi- ness added more than half a million members, boosted by its Peoples Health acquisition. 3. Optum, UnitedHealth's healthcare services business, saw third quarter revenues climb to $25.4 billion, up 11 percent from the same period in 2017. Its prescription drug busi- ness acquired two pharmaceutical companies in the third quarter of this year: Genoa Healthcare and a previously un- disclosed purchase of Avella Specialty Pharmacy. Financial details of the latter deal were not disclosed. 4. Year-to-date, UnitedHealth's profits are up 29 percent to $8.9 billion when compared to the first nine months of 2017. n