Under the planned restructuring, the company will bifurcate its operations into two publicly traded entities named CVS Health and CVS Pharmacy. CVS Health will manage the Aetna insurance arm, the Caremark pharmacy benefit manager, specialty pharmacy operations, and senior care programs offering primary care and home visits. Meanwhile, retail drugstores will operate independently under the CVS Pharmacy brand. This setup keeps the specialty pharmacy tied directly to one of the largest insurers and pharmacy benefit managers in the United States.
Key points
The division reverses decades of strategic corporate deal-making that previously establis…: The division reverses decades of strategic corporate deal-making that previously established a unified national healthcare conglomerate.
Primary care and home visit units for older adults will remain aligned with CVS Health ra…: Primary care and home visit units for older adults will remain aligned with CVS Health rather than the retail stores.
Keeping specialty pharmacy drugs paired with major insurance and benefit management opera…: Keeping specialty pharmacy drugs paired with major insurance and benefit management operations continues to attract criticism regarding prescription profits.
Sources checked by our analysis pipeline: 1
CVS Health will split into two separate companies, unraveling decades of deals that turned CVS into one of the largest health care conglomerates in the country.
Both of the new publicly traded companies will still have CVS in their names: CVS Health and CVS Pharmacy.
CVS Health will include the Caremark pharmacy benefit manager, the Aetna health insurer, the specialty pharmacy, and companies that provide primary care and home visits to older adults. That means high-cost drugs from the specialty pharmacy will still be intertwined with one of the country’s largest PBMs and insurers — a point of contention among critics who believe companies like CVS are profiting excessively from prescription drug dispensing.
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