CVS Health CEO Says Supply of Pharmaceuticals Remains Steady
March 24 2020 - 2:48PM
Dow Jones News
By Anna Wilde Mathews and Melanie Evans
NEW YORK -- CVS Health Corp. Chief Executive Larry Merlo said
the pharmacy operator's supply of pharmaceuticals remains steady as
the coronavirus pandemic roils manufacturing and distribution
markets globally.
"We have not experienced any significant out-of-stock or
difficulty securing important medications," for people with chronic
disease, Mr. Merlo said at The Wall Street Journal's Health Forum,
held virtually Tuesday. "We are seeing people getting their
prescriptions refilled in a very timely manner."
Its retail operations for household basics, though, are under
strain from the pandemic, and customers can expect some spot
shortages, he said. "There has been a dramatic spike in cleaning
supplies, paper products and people looking to restock their
medicine cabinets."
Efforts to expand drive-through testing for the coronavirus are
limited by the size of its store parking lots, and the company is
in talks with local officials about locations with more space, he
said.
Mr. Merlo said it is too soon to tell how the pandemic will
affect its insurance operations, as hospitals care for coronavirus
patients while canceling elective procedures to free beds and
medical staff to respond to the pandemic. The pharmacy giant
acquired health insurer Aetna Inc. for nearly $70 billion in
2018.
The fast-spreading virus has taxed the pharmacy giant's
operations in other ways, as it races to hire more staff to drop
off customer deliveries and man its stores and distribution
centers. CVS said Tuesday it is seeking to fill 50,000 jobs. It is
offering its workforce bonuses and child care to keep them on the
job.
The hiring by big pharmacies and retailers comes as millions of
Americans are losing jobs from efforts to slow contagion. Lockdowns
by states and cities have halted life and business across America
in an effort to curb the spread of the virus and avoid overwhelming
hospitals with a surge of infected patients, as has happened in
Italy and China.
Measures have devastated industries dependent on travel and foot
traffic including airlines, which are grappling with dwindling
passengers and spread of the virus among its workforce.
CVS workers who interact with customers risk exposure to the
virus. Mr. Merlo said CVS is scouring for supply of personal
protective equipment, such as masks and gloves, amid a global
shortage. "We have been working all avenues to secure masks and
gloves for our front-line employees," and limited supplies are
delivered to hot spots, he said.
The company is encouraging employees who feel ill to stay home,
adding additional sick leave and promising to pay workers who must
sit out work to be quarantined, he said. CVS is offering paid leave
for 14-day quarantines and expanded its paid sick leave for
part-time employees as of Sunday.
"One of the things we have emphasized many times is if you don't
feel well, for whatever reason, stay home," Mr. Merlo said. Some
company employees have tested positive for coronavirus. Cases
across the U.S. climbed to 46,800 as of Tuesday, according to Johns
Hopkins University.
(END) Dow Jones Newswires
March 24, 2020 14:33 ET (18:33 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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