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Cvs Caremark: What Is Really Going On

7325 words - 30 pages

CVS Caremark
What is Really Going On

Before we get to the major concept presented by Chapter 2, we must define one of the main contributors to the concept, whistleblowers. Whistleblowers are people who decide to report unethical or illegal activities, usually activities under the control of their employers. According to Halbert and Ingulli, “What unites all whistleblowing is the urge to bring a disturbing situation to light, the urge to bring about some corrective change” (Halbert & Ingulli, 2012, p. 46). This brings us to the concept highlighted in Chapter 2, loyalty to the company, and their views on employment-at-will and their rules for and against whistleblowing. Looking at CVS’ ...view middle of the document...

Patients were being billed more than the minimum required payment for the prescriptions made by the federal third-party insurances. Noticing the discrepancy, the pharmacist alerted the proper authorities and thus a lawsuit formed. In 2011, the case was finally settled and CVS was called to pay the federal government the money lost, as well as additional charges towards the pharmacist who would receive $2.7 million dollars. Now was indeed a whistleblower case, because the reports came from someone who was employed within the CVS Caremark system and thus was under their payroll and thus was protected under their policy. The employee’s future with the company was not discussed and revealed, so there is no proof that CVS indeed followed their own company policy in regards to whistleblowing.
Recently, CVS has been accused of another defrauding federal healthcare programs by Anthony Spay, whose firm was hired several years ago to review internal records. Now this is indeed a whistleblower suit because Spay was a former employee. Maybe not a direct employee who worked behind the counter, but indeed an employee nonetheless who had access to financial documents and thus had the ability to report any misdemeanors by the company. Now the case was very recent, made at the end of 2012, and because so there has not been a final statement by the courts. However, the United States Department of Justice declined to intervene, causing the issue to not be a national matter. Despite this, they have given their two cents on the case. They believe that Spay has sufficient evidence to indict Caremark and indeed has agreed that this is a whistleblower case, despite CVS Caremark saying it isn’t one because PDE is already publicly disclosed. Because this case has not officially been closed and resolved, there is no more information out currently.
CVS Caremark has had many whistleblower accounts in the past. Mainly all of these lawsuits have been about fraud and misuse of federal third party claims. The multitude of people coming out and indicting their employers shows that CVS Caremark does indeed follow its policy and does not punish those who decide to out the company. Because of CVS Caremark’s loyalty to its employees, this allows the employees to be loyal to the mission statement of the company, which is to do right by its customers. When the company shows that it does not punish people for doing the right thing, it allows management to potentially weed out the employees responsible for causing potential harm to the company in the future. This is why whistleblowing is actually beneficial. In the short run, the company will lose money paying for mistakes of a few, but in the long run they will continue to be ethical and maintain a loyal following.
In the United States, billions of emails are sent from any business regarding the business done, and sometimes things that aren’t business at all. I’m talking about things such as company sports, company games, or...

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