In 2015, CVS entered into a $1.9 billion agreement to acquire Target`s pharmacies and operate them under its own banner. Although significantly superior to the agreement with Schnucks, the agreement now appears to be a model for the chain to expand its pharmacy presence without the costs of building and maintaining new pharmacies. On February 18, 2009, CVS Caremark agreed to respond to the Federal Trade Commission`s allegations that, in violation of federal law, it had failed to take adequate and appropriate security measures to protect the sensitive financial and medical information of its customers and employees. In a separate but related deal, the company`s pharmacy chain also agreed to pay US$2.25 million to clarify the Department of Health`s claims that they violated the Health Insurance Portability and Accountability Act (PPTEA). CVS has signed a definitive agreement to take over Schnuck Markets` retail and specialty pharmacy businesses. In 1998, the Washington Post reported that CVS Corporation appeared to be sharing information about prescription drugs with marketing firm Elensys, based in Woburn, Massachusetts. According to Swiss Post, Elensys received information about certain prescription drugs purchased by individual CVS customers and used this information to send targeted direct emails inviting customers to renew prescriptions and promote other products that might be of interest to them. CVS and Elensys argued that there were no data protection issues, given that Elensys acted exclusively as a CVS contractor and that the purpose of the mailings was to inform consumers. However, I don`t think CVS is slowing down its expansion with the HealthHub concept or that there aren`t new markets where its presence might be limited. It`s a balancing act, to say the least, but CVS masterfully increases their accessibility, visibility, and value to patients.
If we just take a step back and look at what Target and CVS are doing together today, it becomes clear that they are important partners to each other.