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Walgreens inks prescription drug deal with Caterpillar
August 26th, 2009
Hal Rosenbluth, Walgreens senior VP and president of its Health and Wellness division
DEERFIELD, Ill. – Walgreen Co. has unveiled a pact with Caterpillar Inc. that creates a direct relationship for the purchase of prescription drugs and uses a transparent pricing model.
The drug store chain said Wednesday that the prescriptions will be offered through its Pharmacy Management Excellence program, which provides transparent drug pricing to employers who offer prescription benefits to employees, dependents and retirees.
Under the program, Caterpillar receives a proprietary price list that is based off the cost that Walgreens pays the drug manufacturer, according to the chain.
More than 70,000 Caterpillar employees, retirees and eligible dependents will have access to prescriptions via the Pharmacy Management Excellence program, since about 70% of all Americans live within 5 miles of a Walgreens store and 50% live within 2 miles, the retailer said, adding that it currently serves as Caterpillar’s pharmacy mail-service provider.
Also, Walgreens and Caterpillar have agreed to explore integrated health and wellness and pharmacy services through the chain's Complete Care and Well-Being program. The initiative combines workplace health centers, in-store health clinics and pharmacies with a discount prescription offering available nationally to a company’s employees, dependents and retirees, wherever they work or live, the chain said.
And to help promote wellness, Walgreens is offering Caterpillar employees, dependents and retirees discounts on all Walgreens branded and nonbranded products. The discount is set to begin January 1, when the Pharmacy Management Excellence program goes into effect, the retailer said.
"We are thrilled to extend our relationship with an industry leader like Caterpillar and, through our Pharmacy Management Excellence offering, help deliver for its employees and their families high-quality, low-cost, convenient pharmacy services," Hal Rosenbluth, Walgreens senior vice president and president of the Health and Wellness division, said in a statement.
“We believe Walgreens' Complete Care and Well-Being program, of which Pharmacy Management Excellence is a key component, makes the historically conflicting goals of delivering quality care while managing costs complementary and achievable," Rosenbluth explained. "We look forward to working with Caterpillar and other corporations on programs to this end."
Walgreens noted that the industrial equipment manufacturer has been engaged in an ongoing effort to rein in the cost of health care and improve its efficacy.
"Transparency around pharmacy pricing, elimination of unnecessary and hidden costs in the prescription drug supply chain, and the opportunity to effectively deliver lower-cost solutions are in great demand by the employer community," commented Todd Bisping, Caterpillar’s pharmacy benefits manager. "We commend Walgreens for developing and embracing a transparent-cost pharmacy pricing methodology."