WOONSOCKET – CVS Health Corp. earned a $7.2 billion profit in 2020, a 8.5% increase year over year, the company reported Tuesday.
Earnings per diluted share were $5.47, compared with $5.08 one year prior.
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“The COVID-19 pandemic presented unique challenges to our business and to the entire health care industry,” CVS Health President and CEO Karen S. Lynch stated. “We utilized the full depth and breadth of our capabilities and our presence in local communities across the country, to play a leadership role in COVID-19 testing and vaccine administration. Our ability to deliver 2020 full-year results above expectations is a testament to the strength of our strategy and the flexibility of our diversified health services model.
Lynch took over as the Woonsocket-based drug store chain top executive on Feb. 1, succeeding the retiring Larry Merlo. She had been executive vice president of CVS Health and president of Aetna Inc.
CVS revenue for the year totaled $268.7 billion, an increase of 4.6% year over year.
The higher revenue was primarily attributed to an increase in growth in the company’s health care benefits and retail/long-term-care segments.
CVS’ pharmacy services segment reported a revenue of $141.9 billion in 2020, an increase of $447 million from 2019. Total pharmacy claims processed by the segment for 2020 totaled 2.1 billion, an increase of 98.7 million from a year earlier.
Retail/LTC segment revenues totaled $91.2 billion, a rise from $86.6 billion one year prior. The segment had 1.47 billion prescriptions filled, a rise of 48 million year over year.
CVS’ health care benefits segment reported $75.5 billion in revenue for the year, a rise of $5.9 billion from one year prior.
The company also highlighted its COVID-19 response. CVS has been administering COVID-19 tests and vaccinations at locations around the country, including approximately 15 million tests and over 3 million vaccines. CVS also said it had hired 15,000 clinicians and pharmacy technicians in the fourth quarter as part of its readiness investments.
“We are proud to be a trusted health partner to more than 100 million customers through our Pharmacy and Health Care businesses and to be able to support millions of Americans in our local communities, many in underserved and remote areas. We are grateful for the dedication of our nearly 300,000 colleagues, many serving on the frontlines, who demonstrated an unwavering commitment to our fellow Americans,” said Lynch.
The company’s fourth-quarter profit totaled $975 million, a decline from $1.7 billion one year prior. Quarterly revenue totaled $69.6 billion, a rise from $66.9 billion one year prior.
