Report: CVS Caremark to Contribute Billions to Michigan Economy $520 million annual contribution to Michigan GDP in jobs, income and taxes on track to grow over next ten years
WOONSOCKET, R.I., May 24, 2012 /PRNewswire/ -- CVS Caremark (NYSE: CVS) today released a report showing CVS Caremark's contribution to the economy of Michigan, where the company maintains extensive operations. According to the findings of the study, which Anderson Economic Group, LLC conducted for CVS Caremark, the company's Michigan operations directly and indirectly contributed more than $520 million to the state's Gross Domestic Product (GDP) in 2011 and supported more than 8,000 jobs, which resulted in $283 million in labor income. The company's operations also resulted in $106 million in state and local taxes.
Over the next ten years, the study found that CVS Caremark's contribution to Michigan's GDP is projected to be approximately $7 billion, assuming its growth matches the average annual growth for the national economy, which is projected by the Congressional Budget Office to be 4.7%. However, if CVS Caremark's growth over the next ten years matches its historical growth, its contribution over the next ten years would increase to approximately $15 billion, the Anderson study projects.
"We are committed to Michigan and are proud of our positive impact on the state's economy," said CVS Caremark President and CEO Larry J. Merlo. "The results of this study are further evidence that as we expand our operations, our present and future colleagues in Michigan will be instrumental in our quest to be a pharmacy innovation company that is reinventing pharmacy for better health."
CVS Caremark maintains an extensive operational footprint in Michigan. These operations include a distribution center totaling 640 thousand square feet, 245 CVS/pharmacy stores and 10 MinuteClinics. The state is also home to a Specialty Mail Order Pharmacy. These operations directly employ nearly 5,300 people.
The industries most impacted by CVS Caremark expenditures are service industries, with finance, real estate and professional and business services accounting for nearly half of the value added and the earnings that are caused indirectly by CVS Caremark expenditures.
The economic scope of CVS Caremark was measured using four metrics: employment, labor income, taxes and value added. For each of these measures, the direct, indirect and induced impacts are calculated to quantify CVS Caremark's total contribution.
In related news, recent research conducted by CVS Caremark also evaluated the economic impact the issue of medication adherence has on all 50 states, including Michigan. The state received Bronze status, ranking relatively high for use of generic medications, in the middle for prescriptions delivered by mail-order and relatively low for first-fill persistency rate, with 39 percent of patients who have chronic disease in the state not refilling their prescription after the first fill.
To read the complete report, "Economic Benefits Study: Contributions of CVS Caremark to Michigan's Economy," and to view Michigan's medication adherence statistics, visit CVSCaremarkfyi.com/Michigan.
About CVS Caremark
CVS Caremark is dedicated to helping people on their path to better health as the largest integrated pharmacy company in the United States. Through the company's more than 7,300 CVS/pharmacy stores; its leading pharmacy benefit manager serving more than 60 million plan members; and its retail health clinic system, the largest in the nation with approximately 600 MinuteClinic locations, it is a market leader in mail order, retail and specialty pharmacy, retail clinics, and Medicare Part D Prescription Drug Plans. As a pharmacy innovation company with an unmatched breadth of capabilities, CVS Caremark continually strives to improve health and lower costs by developing new approaches such as its unique Pharmacy Advisor® program that helps people with chronic diseases such as diabetes obtain and stay on their medications. Find more information about how CVS Caremark is reinventing pharmacy for better health at info.cvscaremark.com.
SOURCE CVS Caremark Corporation