Dallas, Texas 04/02/2014 (FINANCIALSTRENDS) – CVS Caremark Corporation (NYSE:CVS) recently announced that the federal employee benefit program, the ‘Blue Cross and Blue Shield Federal Employee Program’ which boasts of close to 5 million members has renewed its contract with the health care provider to render pharmacy services and benefits to its members for the next three years, there by bringing their total association as business partners close to a much venerated 20 years mark.
Expressing his happiness at the renewing of the contract, which will extend to close to 2 decades post the latest agreement, CVS Caremark Corporation (NYSE:CVS) Pharmacy Benefit Management business unit’s President Jon Roberts has been quoted to have said that “FEP is a highly valued client and we are committed to delivering the same high level of service and patient satisfaction that we have provided to FEP’s federal employees, retirees and their families for many years. We are pleased that FEP continues to recognize the value and services that CVS Caremark provides to their plan and members.”
The renewed contract will run through 2017 and will involve the Woonsocket based firm providing additional services like development of custom built clinical management software, pharma benefit management systems for the pension plan provider.
The contract continues to underline the importance of the pharma services segment, to the overall fortunes of CVS Caremark Corporation (NYSE:CVS), since it has over the past couple of years been contributing close to 60 percent of overall revenues in average. The management team has provided a strong guidance on this segment growing company’s revenue further, as they see more business and customer acquisition occurring post their buyout of services firm Coram LLC.
The announcement came out on 26th march, and in spite of the positive connotations, the stock failed to show any appreciable increase at the browsers in the past week.