Cvs Caremark Case Study

Budget management analysis is used by mangers as a tool and helps determine that all resources available are being used efficiently. The budgets are determined yearly and are based upon the previous year’s budget and variances. This paper will discuss specific strategies to manage budgets within forecast, compare five to seven expense results with budget expectations, describe possible reasons for variances, give strategies to keep results aligned with expectations, recommend three benchmarking techniques, and identify those that might improve budget accuracy, and justify the choices made.

There are different types of budgeting that businesses typically use and those include Operating budgets, Capital Budgets and there are many subtypes that exist because a budget can also be created for special events, the recruitment and retention of new staff, and to manage the advertising expenses and return on investments for a business (Demand Media, 1999-2012). According to Demand Media (1999-2012), "An operating budget outlines the total operating expenses and income for the organization, typically for the period of a fiscal year. Capital budgets evaluate the investments and assets of the business, and a cash budget shows the predicted cash flow in and out of the business over a period of time” (para.2 ). According to the Cost-Benefit Analysis (2012), “Capital budgeting has at its core the tool of cost-benefit analysis; it merely extends the basic form into a multi-period analysis, with consideration of the time value of money. In this context, a new product, venture, or investment is evaluated on a start-to-finish basis, with care taken to capture all the impacts on the company, both cost and benefits. When these inputs and outputs are quantified by year, they can then be discounted to present value to determine the net present value of the opportunity at the time of the decision” ("Cost-Benefit Analysis," 2012).

This research paper is a brief discussion of budget management analysis. Budgeting is the key to financial management, and is the key to translates an organization goals or plan into money. Budgeting is a rough estimate of how much a company will need to get their work done, and provides the basis for evaluating performance, a source of motivation, coordinating business activities, a tool for management communication and instructions to employees. Without a budget an organization would be like a driver, driving blinded without instructions or any sense of direction, that’s how important a budget is to every organization and individual likewise (Clark, 2005).

This article discusses how the implementation of the new ICD10 codes are costing more than originally planned. All practices are required to use 2014-certified electronic health-record technology in order to receive funding from a federal electronic health record incentive program. The new estimates for the ICD10 implantation include the cost of such things as education, IT and documentation

Capital planning and budgeting is a very vital piece in the Public Budgeting System process. It is an essential implement in the financial management practice and is effective in both public and private organizations. It is the method which consists of the determination and the evaluation of the investments and the possible expenses by an organization. As explicate by Lee, Johnson, & Joyce (2008), capital budgets help in determining how much of each form of investment is needed, and it supports an organization in assessing the available revenue which includes loans is required to finance those investments (p. 475). Capital budgeting is a central part of the universal

Changes in current health care practices, the aging baby-boomer population, and the higher acuity of patients has created a need for change and adaptability with the health care industry. Kaiser is an organization who has shown the ability to continuously change in order to reduce costs while improving efficient quality patient care. The investment on information technology (IT) advancements such as the implantation of electronic health records (EHRs) and use of a patient portal system is one way the organization has shown readiness to meet the health care needs of patients. KP in collaboration with five other healthcare organizations created a Care Connectivity Consortium, enabling secure electronic retrieval of current

CVS Health announced in 2014 that it wanted to stop selling all tobacco related products. This will affect every CVS location in the United States of America. The problem that arises in the U.S. is the usage of tobacco products. As a successful pharmacy chain and a lucrative company, CVS health wants to do its best to strengthen the health of American citizens. In order to solve the tobacco problem, the health professionals are taking it upon themselves to make a difference. If the distribution of tobacco products come to a halt at CVS pharmacies, consumers will either stop buying the products all together or looking for the products elsewhere.

CVS Health (formerly CVS Corporation and CVS Caremark Corporation) (formalized as CVS Health) is an American retail pharmaceutical and healthcare company. In 1963 originating from the parent company, Mark Steven, Inc., became a chain of health and beauty aid stores, which after several years, added pharmacies (CVS health, n.d.). In 2007 the CVS Corporation merged with the pharmacy benefit management company Caremark Rx and was renamed CVS Caremark Corporation (CVS health, n.d.). In 2014 CVS Caremark Corporation renamed itself, CVS Health, following the decision to remove tobacco products from CVS Pharmacy store (CVS health, n.d.). In 2016, CVS Health ranked seventh on the Fortune 500 and 18th on the Fortune Global 500 list (CVS health, n.d.).

CVS Health generate revenue mainly from Pharmacy Services Segment and Retail Pharmacy segment. Pharmacy services segment revenue includes: the portion of the price the client pays directly to the PSS, price paid by client plan members for mail order prescriptions or for retail prescriptions and administrative fees for retail pharmacy network contracts. Under PSS revenues generated from the sale of prescription drugs are recognized when the prescription is delivered, and when the prescription drugs are sold by third party pharmacies at the point-of-sale. In Retail Pharmacy Segment revenues are recognize at the time the customer takes possession of the merchandise and at the time the services are performed at RPS’ health care clinics.

A company's budget serves as a guideline in planning and committing costs in order to meet tactical and strategic goals. Tactical goals such as providing budgetary costs for daily operations, and strategic objectives that include R&D, production, marketing, and distribution are all part of the budgeting process. Serving as a guideline rather than being set in stone, the budget is a snapshot of manager's "best thinking at the time it is prepared." (Marshall, 2003, p.496) The budget is a method in which to reign-in discretionary spending, and will likely show variances between what costs have been anticipated and what costs are actually incurred.

By linking cost management efforts to budgeting, companies improve the quality of information available for managers to use in developing their budgets. Accurate cost information is fundamental to budgeting. Companies that use accurate cost management techniques and provide budget developers with ready access to cost information improve both the accuracy and the speed of their budget process.

For this assignment, this writer chose to analyze the CVS Caremark organizational values, mission and vison. According to Norman (2016), almost every corporation or company has a set of values, vision and mission statement (Norman, 2016). The values guide the perspective of the company as well as its actions (Norman, 2016). It is the author’s belief that having a set of commonly-held values can help an define its beliefs and culture . According to Daft, (2013), it is the responsibility of top leaders to decide the end purpose the organization; therefore, their responsibility to determine the organization’s goals, design, and strategy (Daft, 2013). The purpose of this paper is to analyze CVS Caremarks’ mission statement, values and

Your comments regarding coding brought to mind the nationwide transition to ICD-10 coding. While not a new HIT implementation, it was a significant change for HCOs. In our SNF, I am the sole provider responsible

Most entities and organization create budgets as a guide for controlling its spending, prediction of profit, and it expenditure as they progress toward a set goal. Budget involves pulling resources together to achieve a specific goal. According to Gapenski (2006), budgeting is an offshoot in a planning process. A basic managerial accounting tool use in holding planning and control functions together is referred to as set of budgets (p. 255). One major setback manager or budget developer encounter is trying to design a future, a process that cannot be created with the precision just right. This article highlights some financial management

The keen competition requires companies to consider the cost variable. But traditional budgeting method separates the cost into variable and fixed, put the emphasis on the variable cost and consider the fixed cost implacable.