Decline in Pharmacy Customer Satisfaction Driven by Prescription Drug Costs, J.D. Power Finds

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1 Decline in Pharmacy Customer Satisfaction Driven by Prescription Drug Costs, Finds Cost Cited as Primary Driver of Decline in Satisfaction with Brick-and-Mortar and Mail Order Pharmacies COSTA MESA, Calif.: 5 Sept The U.S. pharmacy industry, perennially one of the highest-scoring industries measured by, experienced notable declines in overall customer satisfaction this year. According to the 2017 U.S. Pharmacy Study, SM released today, decreases in satisfaction with both brick-and-mortar and mail order pharmacies are driven primarily by declines in satisfaction with cost. Pharmacies have historically earned very high marks for customer satisfaction, so any significant yearover-year decline is cause for closer investigation, said Rick Johnson, Director of the Healthcare Practice at. Consumer concerns about rising drug prices have likely affected perceptions of the cost for their retail prescriptions. The decrease in satisfaction with cost is the primary drag on overall customer satisfaction, creating a serious challenge for retailers. Following are some of the key findings of the study: Decline in customer satisfaction driven by cost: Decreases in satisfaction with brick-and-mortar pharmacies are driven by year-over-year declines in satisfaction with cost, which falls 27 index points to 789 (on a 1,000-point scale), and the in-store experience, a 14-point drop to 851. Decreases in satisfaction with mail order pharmacies are driven by declines in satisfaction with cost (-49 to 787) and the prescription ordering process (-15 to 877). Drug adherence highest with mail order, lowest at specialty pharmacy: This year s study measures drug adherence levels across the different pharmacy channels for the first time, and finds that 79% of customers who fill their prescriptions through a brick-and-mortar pharmacy say they always adhere to their medications. This compares with 84% among mail order customers and 74% among specialty pharmacy customers. Customers who discuss a prescription with a pharmacist in a brick-and-mortar pharmacy at the time of pick-up have the highest overall levels of adherence. New segment: New to the U.S. Pharmacy Study is the specialty segment. Specialty drugs often require special handling, might be infused, and can cost significantly more than non-specialty prescriptions. Supermarkets have highest overall satisfaction among pharmacy channels: Among all channels studied, supermarkets have the highest levels of overall customer satisfaction (859), followed by mail order (853); hospital or clinic (851); chain drug stores (849); specialty pharmacy (842); and mass merchandisers (839). Study Rankings Good Neighbor Pharmacy ranks highest overall among brick-and-mortar chain drug stores with a score of 889. Health Mart (886) ranks second and The Medicine Shoppe Pharmacy ranks third (879).

2 Sam s Club ranks highest overall among brick-and-mortar mass merchandisers with a score of 874. Fred s (873) ranks second and Costco (875) ranks third. While CVS Pharmacy at Target placed fifth this year, it had the largest increase in satisfaction of any pharmacy from 2016 (+20). Brookshire Grocery Co. ranks highest overall among brick-and-mortar supermarkets with a score of 894. H-E-B (893) ranks second and BI-LO (891) ranks third. Kaiser Permanente Pharmacy ranks highest overall in mail order (884). Humana Pharmacy (871) ranks second and Walmart Pharmacy Mail Services (864) ranks third. Walgreens Specialty Pharmacy ranks highest among specialty pharmacies with a score of 853. BriovaRx (851) ranks second and CVS Specialty/CVS Caremark (840) ranks third. While the Veterans Administration mail order pharmacy (CMOP) is not rank-eligible, it has been either the highest scoring or second-highest scoring mail order pharmacy every year the study has been conducted. In 2017, VA CMOP is the highest-scoring mail order pharmacy and the third-highest scoring pharmacy (892) across all segments. However, VA hospital and clinic pharmacies are the lowest-scoring pharmacies across all segments (786). About the Study The U.S. Pharmacy Study, now in its ninth year, measures customer satisfaction with brick-and-mortar, mail order, and specialty pharmacies. The 2017 study is based on responses from 17,326 pharmacy customers who filled a new prescription or refilled a prescription during the three months prior to the survey period of May-June For more information about the U.S. Pharmacy Study, visit See the online press release at is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable to help its clients drive customer satisfaction, growth and profitability. Established in 1968, is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Media Relations Contacts Geno Effler; Costa Mesa, Calif.; ; media.relations@jdpa.com John Roderick; St. James, N.Y.; ; john@jroderick.com About and Advertising/Promotional Rules # # # NOTE: Six charts follow.

3 Brick and Mortar Chain Drug Stores Good Neighbor Pharmacy 889 Health Mart 886 The Medicine Shoppe Pharmacy 879 Rite Aid Pharmacy 851 Chain Drug Stores Average 849 CVS/pharmacy 845 Walgreens 844 Source:

4 Brick and Mortar Mass Merchandisers Sam's Club 874 Fred s 873 Costco 855 Meijer 851 CVS/pharmacy inside Target 849 Kmart 844 Mass Merchandisers Average 839 ShopKo 832 Walmart 826 Source:

5 Brick and Mortar Supermarkets Brookshire Grocery Company 894 H-E-B 893 BI-LO 891 Wegmans 890 Publix 882 Weis Markets 869 Winn-Dixie 867 Kroger 866 Supermarkets Average 859 Hy-Vee 855 Giant 851 ShopRite 850 Stop & Shop 842 Giant Eagle 838 Albertsons 836 Vons 835 Raleys 829 Safeway 827 Source:

6 Mail Order Kaiser Permanente Pharmacy 884 Humana Pharmacy Walmart Pharmacy Mail Services OptumRx Walgreens Mail Service Express Scripts Mail Order Average CVS/Caremark Cigna Home Delivery Aetna Rx Home Delivery Prime Therapeutics *VA or Department of Veterans Affairs (Mail Order) 892 *The Department of Veterans Affairs pharmacy service is open only to veterans of the U.S. military and their families and therefore is not included in the official rankings. Source:

7 Specialty Walgreens Specialty Pharmacy 853 BriovaRx 851 Specialty Average 842 CVS Specialty or CVS Caremark Specialty Pharmacy 840 Accredo 795 *Department of Veterans Affairs (Specialty) 829 *The Department of Veterans Affairs pharmacy service is open only to veterans of the U.S. military and their families and therefore is not included in the official rankings. Source:

8 Award-Eligible Pharmacies Included in the Study Company Key Executive Company Location Accredo Timothy Wentworth Saint Louis, Mo. Aetna Rx Home Delivery Mark Bertolini Hartford, Conn. Albertsons Robert Miller Boise, Idaho BI-LO Anthony Hucker Jacksonville, Fla. BriovaRx Mark Thierer Schaumburg, Ill. Brookshire Grocery Company Brad Brookshire Tyler, Texas Cigna Home Delivery Pharmacy Program David Cordani Bloomfield, Conn. Costco W. Craig Jelinek Issaquah, Wash. CVS Caremark Larry Merlo Woonsocket, R.I. CVS Pharmacy Larry Merlo Woonsocket, R.I. CVS Specialty Alan Lotvin Woonsocket, R.I. Express Scripts Timothy Wentworth St. Louis, Mo. Fred s Michael Bloom Memphis, Tenn. Giant Thomas Lenkevich Carlisle, Pa. Giant Eagle Laura Karet Pittsburgh, Pa. Good Neighbor Pharmacy Brian Nightengale Conshohocken, Pa. Health Mart Steve Courtman San Francisco, Calif. H-E-B Charles Butt San Antonio, Texas Humana Pharmacy Bruce Broussard Louisville, Ky. Hy-Vee Randy Edeker West Des Moines, Iowa Kaiser Permanente Pharmacy Bernard Tyson Oakland, Calif. Kmart Edward Lampert Hoffman Estates, Ill. Kroger W. Rodney McMullen Cincinnati, Ohio Meijer Mark Murray Grand Rapids, Mich. OptumRx Mark Thierer Schaumburg, Ill. Prime Therapeutics Jim DuCharme Eagan, Minn. Publix Randall Jones, Sr. Lakeland, Fla. Raleys Michael Teel West Sacramento, Calif. Rite Aid Pharmacy John Standley Camp Hill, Pa. Safeway Robert Miller Pleasanton, Calif. Sam's Club John Furner Bentonville, Ark. ShopKo Peter McMahon Ashwaubenon, Wis. ShopRite Joseph Colalillo Keasbey, N.J. Stop & Shop Carl Schlicker Quincy, Mass. The Medicine Shoppe Pharmacy John Fiacco Dublin, Ohio Vons Robert Miller Pleasanton, Calif. Walgreens Stefano Pessina Deerfield, Ill. Walgreens Mail Service Stefano Pessina Deerfield, Ill. Walgreens Specialty Pharmacy Joel Wright Orlando, Fla. Walmart C. Douglas McMillon Bentonville, Ark. Walmart Pharmacy Mail Services C. Douglas McMillon Bentonville, Ark. Wegmans Colleen Wegman Rochester, N.Y. Weis Markets Jonathan Weis Sunbury, Pa. Winn-Dixie Anthony Hucker Jacksonville, Fla.