CVS Health to split pharmacy chain from health insurance
CVS Pharmacy will be separate from CVS Health, housing major insurer Aetna and benefits manager Caremark CVS Health, the largest US healthcare conglomerate valued at $117bn, has announced its plans split off its pharmacy chain from its health insurance and benefits businesses, ending an era in which healthcare companies grew into massive conglomerates. In their announcement on Wednesday, CVS…
CVS Health has announced plans to divide its business into two separate companies. The healthcare conglomerate will split its 9,000 pharmacies, mail order prescription business, and in-store clinics into a new entity named CVS Pharmacy. This new business will be separate from CVS Health, which will house the insurer Aetna and benefits manager Caremark.
According to Semafor, the move reverses a 2018 deal that combined the retail pharmacy chain with Aetna to create a $117 billion empire. Semafor reports that CVS Chief Executive David Joyner told The Wall Street Journal on Tuesday that the businesses are best served by splitting based on current performance. The split comes as companies face increasing political pressure and regulatory scrutiny in Washington.
Brief written by urgent.news from The Guardian US, Semafor, Fierce Healthcare — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.
