Here we will see Why is CVS so Expensive?
The biggest problem with Healthcare
The Healthcare and well-being of the citizens have always been a prime concern for all countries. With growing importance, the price of medicines and medical facilities has also seen a spike in the last few years. Naturally, the suppliers and distributors experience a handsome profit in return.
This also has its disadvantages. A country is not just populated by the high class or the upper-middle class of people. It consists of groups from all sectors of society, including the ones under the BPL line. So it often becomes difficult to avail of these expensive services. People are left with no choice but to face the most unwanted.
Not just in developing countries, but this is also a common scenario in most of the highly resourceful and developed nations. Now, someone might feel this article is all about criticizing the long-established way of living but no that’s not true. Instead, we try to discuss some of the possible reasons which might be a cause behind such high charges. By the end of the article, you are to decide for yourself whether the reasons are justified or not. The healthcare service we’re going to talk about is CVS Health.
What is CVS Health?
Just like Apollo Health in India, CVS Health is one of the largest healthcare service providers in the United States. Its network spans in all directions and there are approximately 500 stores in more than 50 cities including small suburban areas. They specialize in medicines, diagnostic services, and in-home treatment and remedies for the aged. They have a huge number of employees, almost 4 million, and 30,000 exclusive pharmacy specialists!
But, amidst all the bright things, there’s also a factor that is equally concerning and somewhat regarded as a negative point about this highly successful organization. You guessed it right, it is their cost of service. Along with being the most successful retail chain, it is also rumored to be the most expensive service facility available in America. This is a matter of discussion among their customers and researchers have come up with possible reasons to justify the cause behind this. Let us discuss them one by one.
Why is CVS so Expensive?
Here are the reason ‘Why is CVS so Expensive?’.
1. Store Location Proximity Charges
As said earlier, the retail chain has a huge number of stores operating in almost every city in the country. Here, we are not just talking about the pharmacies, but also the diagnostic and medical facilities like conducting blood tests and scans, providing emergency first aid services in a very short time, etc.
This means that the organization has invested millions in establishing a store at every nook and corner of the state, such that the customers in times of emergency do not have to travel long distances to get their desired services. The company calls it the ‘Charge for being Convenient.’ In other words, the amount that they’ve invested in setting up the stores, they try to get some of it back from the customers through the price of their medicines and services.
2. 24/7 Availability
Apart from having stores at every corner, most of them are open throughout the day and are accessible at any time of the week. Some again if not open for 24 hours, have a sufficiently long work time.
This means the franchise has taken every step required to make it easy for the customers, also it helps the storekeepers to restock their services at any time of the day. Therefore this makes CVS eligible for a convenience fee, which they know that their users will have to pay since they’re not being denied any service.
3. Everything under One Roof
CVS always tries to make it a point that all its customers get their required services under one roof. Starting from surgical necessities to other essential items, it tries hard to keep everything in place such that customers never have to run errands in search of their products.
They know that their service takers would be ready to pay any amount to get their needs fulfilled rather than covering long distances to get things done. This entire reasoning is covered in the slightly higher price value of the products.
4. Increased salary
The company tries to offer a higher package to its employees compared to their other organizations in the same sector. This makes it a highly talked about and fairly good place to work for. But how does it afford this? Simple, it keeps the charges of its products a bit high such that they can use the extra balance in providing their employees all the necessary comfort that they need. Also, they keep in mind the profit that is supposed to happen from the sale of a certain fixed number of goods.
Thus we see CVS has several valid reasons already laid for us, to justify their cost. Their excellent service and availability are some of the most important qualities which I think somewhat justify this. The rest, well it is not in our hands.
Thus we learnt Why is CVS so Expensive? While essential services continue to go up the cost graph, we must not forget that it is for them that we get the services at the optimum time. Everything has its pros and cons, it’s for us to choose what is best.