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CVS Will Split Pharmacy Business Into Separate Company

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CVS Will Split Pharmacy Business Into Separate Company

CVS Health says it wants to divide itself into two independent public companies.

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The planned separation will create two entities, company announced Wednesday (Nov. 4). The first is CVS Health, a “healthcare solutions company” made up of Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health.

The second is CVS Pharmacy, a “retail pharmacy and community healthcare company,” comprising around 9,000 CVS pharmacies, mail pharmacy, MinuteClinic (virtual care included), and the Health100 technology services business.

“Our history is defined by proactively evolving to stay ahead of what’s next in healthcare, and in today’s environment, that means delivering more affordability, greater access, and a simpler experience,” CVS Health CEO David Joyner said in a news release.

“Over the last two years, we have made meaningful progress: we built a world-class leadership team, strengthened our financials, revitalized operations across the enterprise, and drove total shareholder return. From a position of strength, and a focus on the long term, we plan to create two focused companies to improve consumer engagement, affordability, and care coordination.”

Upon separation, Joyner will become chairman and CEO of the healthcare solutions company, while Prem Shah, the current president of CVS Health, will become CEO of CVS Pharmacy.

While the newly separated CVS Health focuses on improving “healthcare outcomes and experiences,” CVS Pharmacy will continue to expand its services and “pursue a wider set of partnerships across the healthcare system,” the release added.


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