CVS Health (CVS) Installs Time-Delay Safes in Texas Pharmacies
CVS Health's (CVS) time-delay safes reduce theft and diversion of opioid medications and boost the security of stores, creating a safe environment for patients and staff.
CVS Health Corporation CVS is progressing with its initiative to prevent pharmacy robberies and the potential for associated diversion of controlled substance medications. Recently, the company completed the deployment of time-delay safe technology in all 851 CVS Pharmacy locations, including those in Target stores across Texas.
In September, CVS Health made the initial installation of new safes in all 223 CVS Pharmacy locations in Houston.
Time-Delay Safes to Curb Retail Loss at CVS Stores
As stated earlier, these safes help prevent and address misuse and diversion of controlled substance medications — including opioid medications such as oxycodone and hydrocodone. This system electronically delays the time it takes for pharmacy employees to open the safe. These safes also claim to benefit the safety and well-being of CVS Pharmacy customers and employees.
In 2015, CVS Health first implemented the time-delay safe technology in CVS Pharmacy locations across Indianapolis. With the installation of time-delay safes, the company witnessed a 70% decline in pharmacy robberies among Indianapolis stores. The safes, now in use in 19 states and the District of Columbia, have resulted in a 50% decline in robberies at CVS pharmacies in those local communities.
Significance of Time-Delay Safe Deployment
The time-delay function, which cannot be overridden, electronically delays the time it takes for pharmacy employees to open a safe, restricting robbers trying to get in and out of stores quickly. As time-delay safes reduce the theft and diversion of opioid medications, it brings added security to stores, creating a safe environment for patients and staff.
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Following the implementation, all CVS Pharmacy locations across Texas with time-delay safes will now display visible signage warning that these safes are in use to prevent on-demand access to controlled substance narcotics. Till now, through its Safe Medication Disposal Program in Texas, approximately 250,000 pounds of unwanted and expired medication have been collected in Texas.
Last week, CVS Health announced several measures to support its ongoing strategy of making health care more affordable, accessible and convenient for consumers. With the announcement of these new measures, the company remains focused on the competitive advantage provided by its presence in thousands of communities across the country, which complements CVS Health’s rapidly expanding digital presence.
The company also announced several executive leadership appointments and shared plans to close approximately 300 stores a year for the next three years. Notably, these changes will begin in the spring of 2022.
In the third quarter of 2021, the company witnessed strong demand for integrated solutions across the healthcare continuum, including health management programs for chronic conditions, mental health support, pharmacy services, and health and wellness products.
The retail segment reported above-market growth and also exceeded the company’s expectations with 10% revenue growth. Within pharmacy services, growth outperformed the company’s expectations, delivering 9.3% revenue growth and strong operating income growth. Specialty pharmacy revenues were up 8.7% year over year. The company also noted that it is strengthening the consumer experience by expanding digital services and platforms that connect to health services and in-person channels for more than 35 million unique digital customers.
Shares of the company have gained 38.5% in a year compared with the industry’s 31.3% rise.
Zacks Rank and Key Picks
CVS Health currently carries a Zacks Rank #3 (Hold).
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