CVS Health Corporation (previously CVS Corporation and CVS Caremark Corporation) is an American
healthcare company that owns
CVS Pharmacy
CVS Pharmacy, Inc. is an American retail corporation. A subsidiary of CVS Health, it is headquartered in Woonsocket, Rhode Island. It was also known as, and originally named, the Consumer Value Store and was founded in Lowell, Massachusetts, in ...
, a
retail
Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and t ...
pharmacy chain;
CVS Caremark
CVS Caremark (formerly Caremark Rx) (stylized as , previously CVS/caremark) is the prescription benefit management subsidiary of CVS Health, headquartered in Woonsocket, Rhode Island.
Company history
Caremark was founded as a physician and ph ...
, a
pharmacy benefits manager; and
Aetna
Aetna Inc. () is an American managed health care company that sells traditional and consumer directed health care insurance and related services, such as medical, pharmaceutical, dental, behavioral health, long-term care, and disability plans, ...
, a health insurance provider, among many other brands. The company's headquarters is in
Woonsocket, Rhode Island
Woonsocket ( ), is a city in Providence County, Rhode Island, United States. The population was 43,240 at the 2020 United States Census, 2020 census, making it the sixth largest city in the state. Being Rhode Island's northernmost city, Woonsock ...
.
History of CVS
Consumer Value Stores (CVS) was founded in 1963 by three partners: brothers Stanley and Sidney Goldstein and Ralph Hoagland, who grew the venture from a parent company, Mark Steven, Inc., that helped retailers manage their health and beauty aid product lines. The business began as a chain of health and beauty aid stores, but within several years, pharmacies were added. To expand, the company joined the
Melville Corporation
Melville Corporation, formerly based in Rye, New York, was a large retail holding company incorporated by Ward Melville in 1922 from Melville Shoe Corporation, Melville Shoe Company. It became CVS Corporation in 1996 under a massive reorganization ...
, which managed a string of retail businesses. Following a period of growth in the 1980s and 1990s, CVS Corporation spun off from Melville in 1996, becoming a standalone company trading on the
New York Stock Exchange
The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...
as . In December 2017, CVS agreed to acquire
Aetna
Aetna Inc. () is an American managed health care company that sells traditional and consumer directed health care insurance and related services, such as medical, pharmaceutical, dental, behavioral health, long-term care, and disability plans, ...
for $69billion
and completed the acquisition in November 2018.
Legal issues related to the merger were resolved in September 2019.
In February 2020, CVS Health announced changes to its board of directors, whose size was reduced from 16 to 13 directors.
In 2021, CVS Health was ranked 4th on the
Fortune 500
The ''Fortune'' 500 is an annual list compiled and published by ''Fortune'' magazine that ranks 500 of the largest United States corporations by total revenue for their respective fiscal years. The list includes publicly held companies, along ...
list, and 7th on the ''
Fortune Global 500
The ''Fortune'' Global 500, also known as Global 500, is an annual ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by ''Fortune'' magazine.
Methodology
Until 1989, it listed onl ...
'' list.
On November 18, 2021, CVS Health announced that the company plans to close 900 stores over the next three years with closing due to begin in the spring of 2022.
In November 2021, a federal jury found that CVS, along with
Walgreens
Walgreen Company, d/b/a Walgreens, is an American company that operates the second-largest pharmacy store chain in the United States behind CVS Health. It specializes in filling prescriptions, health and wellness products, health information, an ...
and
Walmart
Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarter ...
, "had substantially contributed to" the
opioid crisis
The opioid epidemic, also referred to as the opioid crisis, is the rapid increase in the overuse, misuse/abuse, and Drug overdose, overdose deaths attributed either in part or in whole to the class of drugs opiates/opioids since the 1990s. It in ...
.
Company name
CVS, begun in
Lowell, Massachusetts
Lowell () is a city in Massachusetts, in the United States. Alongside Cambridge, It is one of two traditional seats of Middlesex County. With an estimated population of 115,554 in 2020, it was the fifth most populous city in Massachusetts as of ...
, by brothers Stanley and Sidney Goldstein and their partner Ralph Hoagland, later had to sell to the
Melville Corporation
Melville Corporation, formerly based in Rye, New York, was a large retail holding company incorporated by Ward Melville in 1922 from Melville Shoe Corporation, Melville Shoe Company. It became CVS Corporation in 1996 under a massive reorganization ...
, formerly based in
Rye,
New York
New York most commonly refers to:
* New York City, the most populous city in the United States, located in the state of New York
* New York (state), a state in the northeastern United States
New York may also refer to:
Film and television
* '' ...
. The name stood for Consumer Value Stores.
Caremark was established by James M. Sweeney in 1979, as Home Health Care of America (HHCA), incorporated in Delaware, with corporate headquarters in Irvine, California. The first office was opened in Beachwood, Ohio, with four employees, in conjunction with Ezra Steiger, of the Cleveland Clinic Foundation. Steiger's Hyperalimentation Team worked closely to provide supplies at home for their
parenteral therapy patients. Satellite offices were subsequently opened in Atlanta, Philadelphia, Houston, Chicago, and Irvine. HHCA changed its name to Caremark in 1985. In 1987, Caremark was acquired by
Baxter International
Baxter International Inc. is an American multinational healthcare company with headquarters in Deerfield, Illinois.
The company primarily focuses on products to treat kidney disease, and other chronic and acute medical conditions. The company ...
. In 1991, when Caremark was
Baxter International
Baxter International Inc. is an American multinational healthcare company with headquarters in Deerfield, Illinois.
The company primarily focuses on products to treat kidney disease, and other chronic and acute medical conditions. The company ...
's home infusion subsidiary, Caremark was accused by the United States government of "paying doctors to steer patients to its intravenous drug service."
Caremark was fined $160million for the "four-year-long federal mail-fraud and kickback" scheme in which the "home-infusion business unit made weekly payments to scores of doctors that averaged about $75 per patient for referring those patients to its services. Some doctors earned as much as $80,000 a year from the kickbacks, according to government documents."
In 1992, Baxter spun off Caremark as a public company. Caremark sold its home infusion service and successfully branched out to four units, "a physician practice management unit, a prescription benefits management unit, a disease state management service aimed at treating high-cost, chronic diseases and an international division."
In 1996, Caremark merged with
Birmingham
Birmingham ( ) is a city and metropolitan borough in the metropolitan county of West Midlands in England. It is the second-largest city in the United Kingdom with a population of 1.145 million in the city proper, 2.92 million in the West ...
,
Alabama
(We dare defend our rights)
, anthem = "Alabama (state song), Alabama"
, image_map = Alabama in United States.svg
, seat = Montgomery, Alabama, Montgomery
, LargestCity = Huntsville, Alabama, Huntsville
, LargestCounty = Baldwin County, Al ...
-based MedPartners/Mullikin, Inc., the combined company being called MedPartners, Inc. In 1998, MedPartners changed its name to
Caremark Rx
CVS Caremark (formerly Caremark Rx) (stylized as , previously CVS/caremark) is the prescription benefit management subsidiary of CVS Health, headquartered in Woonsocket, Rhode Island.
Company history
Caremark was founded as a physician and ph ...
.
On September 3, 2014, it was announced that CVS, as of midnight Tuesday September 2, 2014, would no longer sell tobacco products at all of its 7,700 locations nationwide, a month earlier than planned. It also announced it would change its corporate name to CVS Health to reflect "its broader health care commitment" and a desire to change the future health of Americans, although all retail stores would continue to be called "CVS/pharmacy", unless they did not contain a pharmacy, in which case they are just signed CVS.
History
1960s
The first Consumer Value Store (CVS), selling health and beauty products, was founded in 1963, in
Lowell, Massachusetts
Lowell () is a city in Massachusetts, in the United States. Alongside Cambridge, It is one of two traditional seats of Middlesex County. With an estimated population of 115,554 in 2020, it was the fifth most populous city in Massachusetts as of ...
, by brothers Stanley and Sidney Goldstein and Ralph Hoagland. By 1964, CVS had 17 stores that sold primarily beauty products. In 1967, CVS opened its first stores with pharmacy departments in
Warwick, Rhode Island
Warwick ( or ) is a city in Kent County, Rhode Island, the third largest city in the state with a population of 82,823 at the 2020 United States Census, 2020 census. It is located approximately south of downtown Providence, Rhode Island, sout ...
, and
Cumberland, Rhode Island
Cumberland is the northeasternmost town in Providence County, Rhode Island, United States, first settled in 1635 and incorporated in 1746. The population was 36,405 at the 2020 census, making it the seventh-largest municipality and the largest t ...
.
CVS was sold to Melville Corporation in 1969.
1970s
By 1970, CVS was operating 100 stores in
New England
New England is a region comprising six states in the Northeastern United States: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. It is bordered by the state of New York to the west and by the Canadian provinces ...
and the
Northeast
The points of the compass are a set of horizontal, radially arrayed compass directions (or azimuths) used in navigation and cartography. A compass rose is primarily composed of four cardinal directions—north, east, south, and west—each se ...
. In 1972, CVS acquired 84 Clinton Drug and Discount Stores. This purchase introduced CVS to the Midwest with stores in
Indiana
Indiana () is a U.S. state in the Midwestern United States. It is the 38th-largest by area and the 17th-most populous of the 50 States. Its capital and largest city is Indianapolis. Indiana was admitted to the United States as the 19th s ...
.
During 1977, CVS acquired 36
New Jersey
New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north and east by the state of New York; on the east, southeast, and south by the Atlantic Ocean; on the west by the Delaware ...
–based Mack Drug stores.
1980s
* 1983: Hemophilia patient home health care is launched.
* 1988: CVS acquires Heartland Drug, a small pharmacy company in the Boston area giving it stores in the Boston metro including Watertown Square and Harvard Square.
1990s
* 1990: CVS acquired 500
Peoples Drug
Peoples Drug was a chain of drugstores based in Alexandria, Virginia. Founded in 1905, Peoples was subsequently purchased by Lane Drug in 1975, Imasco in 1984, and finally by CVS in 1990, which continued to run the stores under the Peoples banne ...
stores, establishing the company in new mid-Atlantic markets including Washington, D.C., Pennsylvania, Maryland and Virginia.
* 1994: CVS launched PharmaCare, a
pharmacy benefit management
In the United States, a pharmacy benefit manager (PBM) is a third-party administrator of prescription drug programs for commercial health plans, self-insured employer plans, Medicare Part D plans, the Federal Employees Health Benefits Program, ...
(PBM) company.
* 1996: CVS Corporation became a standalone company trading on the New York Stock Exchange under the "CVS" ticker. Stanley Goldstein was the company's first chairman.
* 1997: CVS acquired over 2,500
Revco
Revco Discount Drug Stores (known simply as Revco or Revco, D.S.), once based in Twinsburg, Ohio, was a major drug store chain operating through the Ohio Valley, the Mid-Atlantic states, and the Southeastern United States. The chain's stock ...
drug stores, establishing the company in additional Midwestern, Southeastern and Eastern states.
* 1998: CVS acquired 207 stores from
Arbor Drugs,
giving CVS its first stores in Michigan.
* 1999: CVS acquired Soma.com, the first
online pharmacy
An online pharmacy, internet pharmacy, or mail-order pharmacy is a pharmacy that operates over the Internet and sends orders to customers through mail, shipping companies, or online pharmacy web portal.
Online pharmacies include:
* Pharmacy ben ...
, and renamed it CVS.com to become the first fully integrated online and brick-and-mortar pharmacy offering to consumers.
2000s
* 2000: CVS acquired Stadtlander pharmacy from
Bergen Brunswig Corporation, making CVS ProCare the largest specialty pharmacy in the U.S. at the time.
* 2001: CVS/pharmacy launched the ExtraCare loyalty card program. Within a year, 30million customers enrolled to earn rewards and receive discounts.
* 2004: CVS purchased 1,268
Eckerd drug stores and Eckerd Health Services, Eckerd's PBM/Mail-order pharmacy business, from
JCPenney
Penney OpCo LLC, doing business as JCPenney and often abbreviated JCP, is a midscale American department store chain operating 667 stores across 49 U.S. states and Puerto Rico. Departments inside JCPenney stores include Mens, Womens, Boys, Gir ...
.
The purchase expanded the company's footprint in Texas, Florida and other southern states.
* 2006: CVS acquired 700 freestanding drug store operations of supermarket chain
Albertsons
Albertsons Companies, Inc. is an American grocery company founded and headquartered in Boise, Idaho.
With 2,253 stores as of the third quarter of fiscal year 2020 and 270,000 employees as of fiscal year 2019, the company is the second-larg ...
,
including stores trading under the
Osco Drug
Osco Drug and Sav-on Drugs were the names of a pair of chain pharmacies that operated in the United States. Osco Drug was founded by the Skaggs family. Alpha Beta grocery store was purchased by American Stores in 1961. Skaggs Drug Centers boug ...
and
Sav-On Drugs
Osco Drug and Sav-on Drugs were the names of a pair of chain pharmacies that operated in the United States. Osco Drug was founded by the Skaggs family. Alpha Beta grocery store was purchased by American Stores in 1961. Skaggs Drug Centers bou ...
banners.
* 2006: CVS acquired Minneapolis-based
MinuteClinic
MinuteClinic is a division of CVS Health (NYSE: CVS) that provides retail clinic services. MinuteClinic was initially started as QuickMedx by Dr. Douglas Smith and his patient Rick Krieger, along with Stephen Pontius in Minneapolis, Minnesota. M ...
, as a wholly owned subsidiary of CVS Corporation.
* 2007: CVS Corporation and Caremark Rx, Inc. complete their transformative merger, creating CVS Caremark, an integrated pharmacy services provider, and the corporate headquarters remained in Woonsocket, RI. Tom Ryan, the chairman and CEO of CVS remained president and CEO of CVS Caremark Corporation, while Caremark's Edwin Crawford became the chairman of the board.
* 2008: CVS Caremark acquired 541 stores from
Longs Drugs Stores
Longs Drugs is an American chain owned by parent company CVS Health with approximately 70 drugstores throughout the state of Hawaii and formerly in the Continental US.
Before being acquired by parent company in 2008, it was a chain of over 500 s ...
Corp in California, Hawaii, and Nevada.
2010s
* 2011:
Larry Merlo
Larry J. Merlo (born 1956) is the former president and CEO of CVS Health.
Background
Merlo grew up in Charleroi, Pennsylvania, just south of Pittsburgh, and graduated from Charleroi Area High School in 1973. He graduated from the University of Pi ...
succeeds Tom Ryan as president and CEO of CVS Caremark. Merlo joined CVS/pharmacy in 1990, through the acquisition of People's Drug.
* 2014: CVS Caremark acquired Coram, the specialty infusion services and
enteral nutrition
Enteral administration is food or drug administration via the human gastrointestinal tract. This contrasts with parenteral nutrition or drug administration (Greek ''para'', "besides" + ''enteros''), which occurs from routes outside the GI tract, ...
business unit of Apria Healthcare Group Inc.
* 2014: CVS Caremark announced it would stop selling cigarettes and tobacco products in all of its CVS/pharmacy stores.
* 2014: CVS Caremark removed all cigarettes and tobacco products from its CVS/pharmacy stores and launched a national smoking cessation program. The company also changed its corporate name to CVS Health.
* 2014: CVS Health acquired 33 Miami-based
Navarro Discount Pharmacy stores, the largest Hispanic-owned drugstore chain the United States.
* 2015: CVS Health acquired
Omnicare
Omnicare is an American company working in the health care industry. It was established in April 1981 as a spinoff of healthcare businesses from Chemed and W. R. Grace and Company. It is currently a pharmacy specializing in nursing homes. In 20 ...
, provider of pharmacy services to long-term care facilities.
* 2015: CVS Health acquires
Target Corporation
Target Corporation (doing business as Target and stylized in all lowercase since 2018) is an American big box department store chain headquartered in Minneapolis, Minnesota. It is the seventh largest retailer in the United States, and a compon ...
's 1,600+ pharmacies and retail medical clinics inside Target stores. CVS has begun operating them through a store-within-a-store format.
* 2017: CVS announced they would be installing 25
vending machines
A vending machine is an automated machine that provides items such as snacks, beverages, cigarettes, and lottery tickets to consumers after cash, a credit card, or other forms of payment are inserted into the machine or otherwise made. The fir ...
in high traffic areas like,
bus terminals,
airports
An airport is an aerodrome with extended facilities, mostly for commercial air transport. Airports usually consists of a landing area, which comprises an aerially accessible open space including at least one operationally active surface ...
, and
college campuses. The first kiosks will be located in
LaGuardia Airport
LaGuardia Airport is a civil airport in East Elmhurst, Queens, New York City. Covering , the facility was established in 1929 and began operating as a public airport in 1939. It is named after former New York City mayor Fiorello La Guardia. ...
and Boston's
South Station Bus Terminal
The South Station Bus Terminal, owned by the Massachusetts Bay Transportation Authority, is the main gateway for long-distance coach buses in Boston, Massachusetts. It is located at 700 Atlantic Avenue, at the intersection with Beach Street, ...
and will carry personal items such as toothpaste, deodorant, batteries, and healthy snack foods.
* 2017: CVS announced they agreed to buy
health insurer
Health insurance or medical insurance (also known as medical aid in South Africa) is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance, risk is shared among m ...
Aetna for roughly about $207 per share, broken down into $145 in cash and the rest in stock, in December 2017.
If approved, it would allow CVS to provide a broad range of health services to Aetna's 22million medical members.
* December 5, 2017: ''
The Wall Street Journal
''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' reported that there was still a $69billion deal pending between CVS and Aetna, so long as it received government approval. CVS CEO Larry Merlo had been named to run the combined company.
* 2018: In November, CEO Larry Merlo told ''
USA Today
''USA Today'' (stylized in all uppercase) is an American daily middle-market newspaper and news broadcasting company. Founded by Al Neuharth on September 15, 1982, the newspaper operates from Gannett's corporate headquarters in Tysons, Virgini ...
'' that the drugstore chain plans to renovate its stores to focus more on health care and less on retail following its merger with the health insurance company Aetna. The new strategy is to offer medical services along with prescription drugs, among other products.
* June 4, 2019: ''USA Today'' reported on the planned expansion of a CVS Health store concept called HealthHUB to 1,500 locations by the end of 2021. The concept, launched in the Houston area in early 2019, realigns CVS retail outlets with a stronger focus on health care services. HealthHUB stores dedicate at least 20% of their floor space to health care services such as yoga classes and enlarged Minute Clinic spaces to offer more health assessments. To accommodate HealthHUB, CVS locations will reduce the floor space currently devoted to slower-selling merchandise, such as greeting cards. The store conversions to the HealthHub format was paused in March 2020, due to the
COVID-19 pandemic
The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identif ...
.
2020s
* On November 18, 2021, CVS Health announced that the company plans to close 900 stores nationwide over the next three years because of what executives described as changes in consumer shopping behavior, population, and the future of health care needs. The closures would represent approximately 10 percent of stores in the U.S.
* On December 2, 2021, CVS Health announced a strategic partnership with
Microsoft
Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washing ...
to improve personalized care and digital health.
Acquisition of Aetna
On November 28, 2018, CVS Health completed the acquisition of Aetna.
On December 3, 2018, U.S. District Judge
Richard J. Leon informed CVS Health Corp and the insurer Aetna that they have to keep their management separate until he weighs in on their $69billion merger. The judge gave CVS and Aetna until December 14, 2018, to explain why the companies should not hold off on their consolidation.
In September 2019, Judge Leon gave final approval to the merger. As a condition of the approval, Aetna had sold its Medicare prescription insurance plans to
WellCare
WellCare Health Plans, Inc. is an American health insurance company that provides managed care services primarily through Medicaid, Medicare Advantage and Medicare Prescription Drug plans for members across the United States.
WellCare began ...
Health Plans.
Acquisition of Signify Health
In September 2022, CVS Health announced that it reached an agreement to buy at-home health company Signify Health for roughly $8 billion. It came one month after it announced a plan to move into
primary care
Primary care is the day-to-day healthcare given by a health care provider. Typically this provider acts as the first contact and principal point of continuing care for patients within a healthcare system, and coordinates other specialist care t ...
by the end of the year.
Finances
Subsidiaries and assets
CVS Pharmacy
CVS Pharmacy is one of the largest retail pharmacy chains in the United States, with 9,600 stores located in all 50 states, the District of Columbia, and
Puerto Rico
Puerto Rico (; abbreviated PR; tnq, Boriken, ''Borinquen''), officially the Commonwealth of Puerto Rico ( es, link=yes, Estado Libre Asociado de Puerto Rico, lit=Free Associated State of Puerto Rico), is a Caribbean island and Unincorporated ...
, operating primarily under the CVS Pharmacy, CVS, Longs Drugs, Navarro Discount Pharmacy and Drogaria Onofre names.
CVS Pharmacy fills more than one of every five prescriptions in the United States, and 85% of U.S. population lives within 10 miles of a CVS Pharmacy. The ExtraCare loyalty program boasts over 70million cardholders, making it the largest retail loyalty program in the country.
MinuteClinic
MinuteClinic retail medical clinics operate inside CVS Pharmacy locations within the United States. It is the largest walk-in medical clinic in the United States, with over 1,100 locations in 33 states and the
District of Columbia
)
, image_skyline =
, image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...
. More than 50 percent of the U.S. population now lives within 10 miles of a MinuteClinic.
CVS Caremark
CVS Caremark
CVS Caremark (formerly Caremark Rx) (stylized as , previously CVS/caremark) is the prescription benefit management subsidiary of CVS Health, headquartered in Woonsocket, Rhode Island.
Company history
Caremark was founded as a physician and ph ...
provides comprehensive
prescription benefit management services including
mail order pharmacy services,
specialty pharmacy Specialty pharmacy refers to distribution channels designed to handle specialty drugs — pharmaceutical therapies that are either high cost, high complexity and/or high touch. High touch refers to higher degree of complexity in terms of distributi ...
and
infusion services, plan design and administration,
formulary management and claims processing. The company's clients are primarily employers, insurance companies, unions, government employee groups, health plans, Managed Medicaid plans and other sponsors of health benefit plans and individuals throughout the United States. CVS Caremark manages the dispensing of prescription drugs for more than 75million plan members through five mail order pharmacies, specialty pharmacies, long-term care pharmacies and national network of more than 68,000 retail pharmacies, consisting of approximately 41,000 chain pharmacies and 27,000 independent pharmacies.
CVS Specialty
CVS Specialty is the specialty pharmacy division that provides specialty pharmacy services for individuals with chronic or genetic diseases who require complex and expensive drug therapies. CVS Health operate 24 retail specialty pharmacy stores and 11 specialty mail order pharmacies, making them the largest specialty pharmacy in the United States.
Longs Drugs
Longs Drugs
Longs Drugs is an American chain owned by parent company CVS Health with approximately 70 drugstores throughout the state of Hawaii and formerly in the Continental US.
Before being acquired by parent company in 2008, it was a chain of over 500 s ...
is a retail pharmacy chain with approximately 40 drug stores throughout the state of Hawaii. The company was acquired by CVS Health in October 2008, and is operated as a separate brand.
Navarro Discount Pharmacies
Navarro Discount Pharmacies
Navarro Discount Pharmacies, Inc., frequently referred to as Navarro is a pharmacy chain, photo service, and pharmacy benefit manager in the United States. The company was acquired by CVS Health in September, 2014 and is operated as a separa ...
is a pharmacy chain, photo service, and pharmacy benefit manager in the United States. The company was acquired by CVS Health in September 2014, and is operated as a separate brand of CVS Health. The company mainly operates in Miami-Dade and Broward Counties and currently has 33 stores.
Accordant
Accordant provides rare disease case management and care management services for patients with rare, chronic diseases and their caregivers. Clients are primarily health plans, employers, and third party administrators (TPAs). The company is operated as a wholly owned subsidiary of CVS Health Corporation.
Coram
Coram is one of the nation's largest providers of infusion services, clinical and compliance monitoring and individual patient counseling and education. Coram cares for 140,000 patients annually through a national network of more than 85 locations as well as the largest home infusion network in the United States.
The company was acquired by CVS Health in August 2015, and is operated as a wholly owned subsidiary of CVS Health Corporation.
Omnicare
Omnicare
Omnicare is an American company working in the health care industry. It was established in April 1981 as a spinoff of healthcare businesses from Chemed and W. R. Grace and Company. It is currently a pharmacy specializing in nursing homes. In 20 ...
is a provider of pharmacy services to the long-term care market for patients in skilled nursing and assisted living facilities throughout North America. The company was acquired by CVS Health in August 2015, and is operated as a wholly owned subsidiary of CVS Health Corporation.
HealthHUB
HealthHUBs operate inside of select CVS Pharmacy locations and offer a variety of additional services in addition to traditional CVS locations. HealthHUB locations offer and expanded variety of Sleep Apnea, Durable Medical Equipment, Home and Health technology, and compression therapy. HealthHUBs are staffed by Care Concierges who are experts in HealthHub products and services. In addition, MinuteClinic locations that are HealthHub stores have expanded services and hire Medical Assistants, Registered Nurses, and Licensed Practical and Vocational Nurses to help support the Nurse Practitioners and Physician Assistants.
Store brands and private label brands
CVS Health offers a number of over-the-counter private label brands in their retail pharmacy stores, including grocery brands Gold Emblem™ and Gold Emblem Abound™; household products under the Total Home name; preservative-free vitamins and supplements under the Radiance PLATINUM line; and beauty and skin products through the Beauty 360, Nuance Salma Hayek, Makeup Academy, Skin+Pharmacy, Blade and Essence of Beauty lines.
Community involvement and philanthropy
* The CVS Caremark Charitable Trust was established to provide funding for health care, education and community involvement initiatives in communities where CVS/pharmacy stores are located.
* Since 1978, CVS Samaritan Vans have provided free roadside assistance to motorists and the community in numerous cities. They are "emergency response vehicles" that patrol select major freeways of Chicago, Charlotte, Cincinnati, Cleveland, Boston, Detroit, Indianapolis, Providence and Washington, D.C., in search of motorists in need. The drivers have a multitude of talents and certifications. They are Nationally Certified Auto Mechanics, State Certified Emergency Medical Technicians (EMTs) or Paramedics, and Nationally Certified Animal Control Officers. They are capable of making numerous on-site auto repairs, administering medical help, calming a tense situation or using their communication equipment to summon the state police or other assistance. Each year, the CVS Samaritan Vans travel about , checking and assisting nearly 50,000 people, and responding to more than 61,000 roadway incidents.
* Played at the Rhode Island Country Club, the
CVS Caremark Charity Classic
The CVS Health Charity Classic is a professional golf tournament. It is contested annually as a one-day, three-person team event. Each team is made up of one player from each of three Tours: PGA Tour, PGA Tour Champions, and LPGA Tour. The top tw ...
was established to raise money for the support of non-profit agencies throughout New England. Since 1999, it has raised over $8million for charity. The event has featured golf legends such as Arnold Palmer, Jack Nicklaus, Hale Irwin, and Gary Player along with today's top stars like David Duval, Chris DiMarco, Davis Love III, & Scott McCarron.
Tobacco products removed from stores
On February 5, 2014, CVS announced that the company would discontinue the sale of all tobacco and cigarette products from their stores by October 1, 2014. In a statement explaining the change, CVS president and CEO Larry J. Merlo said, "We came to the decision that cigarettes and providing health care just don't go together in the same setting."
Criticism and controversy
On August 22, 2001, CVS Corp was sued for purchasing Trio Drugs' records which should be kept confidential.
Elensys
In 1998, ''
The Washington Post
''The Washington Post'' (also known as the ''Post'' and, informally, ''WaPo'') is an American daily newspaper published in Washington, D.C. It is the most widely circulated newspaper within the Washington metropolitan area and has a large nati ...
'' reported that CVS Corporation appeared to be sharing
prescription drug
A prescription drug (also prescription medication or prescription medicine) is a pharmaceutical drug that legally requires a medical prescription to be dispensed. In contrast, over-the-counter drugs can be obtained without a prescription. The rea ...
information with the
Woburn, Massachusetts, based marketing company, Elensys. According to the ''Post'', Elensys received information on specific prescription drugs that individual CVS customers had purchased and used this information to send targeted direct mailings urging customers to renew prescriptions and promoting other products in which they might be interested. CVS and Elensys argued that there were no privacy issues because Elensys was acting solely as a
contractor to CVS, and because the purpose of the mailings was to educate consumers. CVS claimed that it never shared customers'
medical histories with Elensys (despite ''The Washington Post''
's indirect evidence that they had). George D. Lundberg, editor of the ''
Journal of the American Medical Association
''The Journal of the American Medical Association'' (''JAMA'') is a peer-reviewed medical journal published 48 times a year by the American Medical Association. It publishes original research, reviews, and editorials covering all aspects of bio ...
'', called the practice "a gross invasion" of
privacy
Privacy (, ) is the ability of an individual or group to seclude themselves or information about themselves, and thereby express themselves selectively.
The domain of privacy partially overlaps with security, which can include the concepts of a ...
. Following a firestorm of criticism and complaints by consumers, CVS discontinued the relationship with Elensys, and moved the practice in-house.
Boston prescriptions
During 2005, a series of prescription mistakes came to light in some of CVS Corporation's
Boston
Boston (), officially the City of Boston, is the state capital and most populous city of the Commonwealth of Massachusetts, as well as the cultural and financial center of the New England region of the United States. It is the 24th- mo ...
-area stores. An investigation confirmed 62 errors or quality problems going back to 2002. In February 2006, the state Board of Pharmacy announced that the non-profit Institute for Safe Medication Practices (ISMP) would monitor all Massachusetts stores for the next two years.
Health and Medicare fraud
In the late 1980s and early 1990s Caremark RX was involved in a number of health fraud and
Medicare fraud scandals.
The combined price to settle this dispute with the U.S. Government cost the company over $250million.
Pharmaceutical kickbacks
In 2005, Caremark Rx paid $137.5million to settle federal lawsuits filed by
whistleblower
A whistleblower (also written as whistle-blower or whistle blower) is a person, often an employee, who reveals information about activity within a private or public organization that is deemed illegal, immoral, illicit, unsafe or fraudulent. Whi ...
s that accused a company it acquired in 2003, of improper dealings with pharmaceutical manufacturers.
The lawsuits said that the acquired company,
AdvancePCS
AdvancePCS Inc. (Pharmaceutical Card System) was a large prescription benefit plan administrator from the United States, also known as a PBM (Pharmacy Benefit Manager).
The company was partially purchased by McKesson in 1969 and fully in 1972. I ...
, accepted kickbacks from drug makers to promote their products over those of rivals under contracts with government programs including the Federal Employees Health Benefit Program, the Mail Handlers Health Benefit Program and Medicare health maintenance plans.
There was no admission of wrongdoing by Caremark or AdvancePCS.
CVS Caremark Corp. has changed their practices. The formulary revision process considers manufacturer rebates, payments from drug manufacturers for low placement on PBM (Pharmacy Benefit Manager) formularies, along with average wholesale price (AWP), drug availability, and bulk discounts when choosing at which co-pay a brand name drug should be placed.
Deceptive business practices
In February 2008, CVS settled a large civil lawsuit for deceptive business practices. The
Kaiser Family Foundation
KFF (Kaiser Family Foundation), also known as The Henry J. Kaiser Family Foundation, is an American non-profit organization, headquartered in San Francisco, California. It prefers KFF since its legal name can cause confusion as it is no longer a ...
reported:
CVS has agreed to a $38.5million settlement in a multi-state civil deceptive-practices lawsuit against pharmacy benefit manager Caremark filed by 28 attorneys general, the ''Chicago Tribune
The ''Chicago Tribune'' is a daily newspaper based in Chicago, Illinois, United States, owned by Tribune Publishing. Founded in 1847, and formerly self-styled as the "World's Greatest Newspaper" (a slogan for which WGN radio and television ar ...
'' reports. The attorneys general, led by Lisa Madigan (D) of Illinois and Douglas Ganslar (D) of Maryland, allege that Caremark "engaged in deceptive business practices" by informing physicians that patients or health plans could save money if patients were switched to certain brand-name prescription drugs (Miller, ''Chicago Tribune'', 2/14).
However, the switch often saved patients and health plans only small amounts or increased their costs, while increasing Caremark's profits, Connecticut Attorney General Richard Blumenthal (D) said (Levick, ''Hartford Courant
The ''Hartford Courant'' is the largest daily newspaper in the U.S. state of Connecticut, and is considered to be the oldest continuously published newspaper in the United States. A morning newspaper serving most of the state north of New Haven ...
'', 2/15). Pennsylvania Attorney General Tom Corbett (R) said the Pharmacy Benefit Manager (PBM),[Pharmacy Benefit Manager] kept discounts and rebates that should have been passed on to employers and patients (Levy, '' AP/San Francisco Chronicle
The ''San Francisco Chronicle'' is a newspaper serving primarily the San Francisco Bay Area of Northern California. It was founded in 1865 as ''The Daily Dramatic Chronicle'' by teenage brothers Charles de Young and M. H. de Young, Michael H. de ...
'', 2/14). In addition, Caremark did not "adequately inform doctors" of the full financial effect of the switch and did not disclose that the switch would increase Caremark's profits, the lawsuit alleges (''Chicago Tribune'', 2/14).
...The settlement prohibits CVS from requesting prescription drug switches in certain cases, such as when the cost to the patient would be higher with the new prescription drug; when the original prescription drug's patent will expire within six months; and when patients were switched from a similar prescription drug within the previous two years (''Hartford Courant'', 2/15). Patients also have the ability to decline a switch from the prescribed treatment to the prescription offered by the pharmacy under the settlement, Madigan said (''Bloomberg News
Bloomberg News (originally Bloomberg Business News) is an international news agency headquartered in New York City and a division of Bloomberg L.P. Content produced by Bloomberg News is disseminated through Bloomberg Terminals, Bloomberg Televi ...
/The Philadelphia Inquirer
''The Philadelphia Inquirer'' is a daily newspaper headquartered in Philadelphia, Pennsylvania. The newspaper's circulation is the largest in both the U.S. state of Pennsylvania and the Delaware Valley metropolitan region of Southeastern Pennsy ...
'', 2/15).
Rhode Island Senate corruption case
In 2008, two former CVS executives, John R. "Jack" Kramer and Carlos Ortiz, were charged with 20 counts of mail fraud, bribery and conspiracy in relation to Operation Dollar Bill, a probe of corruption in the Rhode Island General Assembly. Kramer and Ortiz hired former state senator John Celona, who currently is serving years on corruption charges involving CVS and other companies, as a media consultant for $12,000 a year. Celona was known for walking out on a pharmacy choice vote in the state senate while on the CVS payroll. Despite originally claiming CVS never bought any favors in his own trial, he testified against Kramer and Ortiz as the prosecution's star witness. On May 31, 2008, Kramer and Ortiz were acquitted on all counts. One juror went on the record as saying "My perception living in Rhode Island all my life is, 'Yeah, this probably did go on', but I didn't see any proof beyond a reasonable doubt that CVS did this."
Business practices under investigation
On May 4, 2010, CVS Caremark Corp. announced that its business practices were being investigated by a group of 24 states, along with the District of Columbia and Los Angeles County. At issue is the post-merger relationship between CVS and Caremark. In addition, the company had earlier acknowledged in a filing with the Securities and Exchange Commission (SEC) that it had received a subpoena from the Office of Inspector General of the United States Department of Health and Human Services, requiring the company to provide information regarding the incentives the company provides to customers who transfer their prescriptions to CVS, including gift cards, goods and other incentives.
FTC charges of privacy violations
On February 18, 2009, CVS Caremark agreed to settle
Federal Trade Commission
The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction ov ...
charges that it failed to take reasonable and appropriate security measures to protect the sensitive financial and medical information of its customers and employees, in violation of federal law. In a separate but related agreement, the company's pharmacy chain also has agreed to pay $2.25million to resolve Department of Health and Human Services allegations that it violated the
Health Insurance Portability and Accountability Act
The Health Insurance Portability and Accountability Act of 1996 (HIPAA or the Kennedy– Kassebaum Act) is a United States Act of Congress enacted by the 104th United States Congress and signed into law by President Bill Clinton on August 21, 1 ...
(HIPAA).
FTC charges of deceptive pricing
On January 12, 2012, CVS Caremark paid $5million to settle Federal Trade Commission charges that it misrepresented the prices of certain Medicare Part D prescription drugs – including drugs used to treat breast cancer symptoms and epilepsy – at CVS and
Walgreens
Walgreen Company, d/b/a Walgreens, is an American company that operates the second-largest pharmacy store chain in the United States behind CVS Health. It specializes in filling prescriptions, health and wellness products, health information, an ...
pharmacies.
DEA investigation into oxycodone diversion
According to the U.S. Justice Department, in 2011, CVS pharmacies in Sanford, Florida, ordered enough painkillers to supply a population eight times its size. Sanford has a population of 53,000 but the supply would support 400,000. According to the
Drug Enforcement Administration
The Drug Enforcement Administration (DEA; ) is a Federal law enforcement in the United States, United States federal law enforcement agency under the U.S. Department of Justice tasked with combating drug trafficking and distribution within th ...
, in 2010, a single CVS pharmacy in Sanford ordered 1.8million Oxycodone pills, an average of 137,994 pills a month. Other pharmacy customers in Florida averaged 5,364 oxycodone pills a month. DEA investigators serving a warrant to a CVS pharmacy in Sanford on October 18, 2011, noted that "approximately every third car that came through the drive-thru lane had prescriptions for oxycodone or hydrocodone". According to the DEA, a pharmacist at that location stated to investigators that "her customers often requested certain brands of oxycodone using street slang", an indicator that the drugs were being diverted and not used for legitimate pain management. In response, CVS in a statement issued February 17 in response to opioid trafficking questions from ''
USA Today
''USA Today'' (stylized in all uppercase) is an American daily middle-market newspaper and news broadcasting company. Founded by Al Neuharth on September 15, 1982, the newspaper operates from Gannett's corporate headquarters in Tysons, Virgini ...
'' said the company is committed to working with the DEA and had taken "significant actions to ensure appropriate dispensing of painkillers in Florida".
Restatements
On November 15, 1999, CVS announced a restatement of its financial results for 1997, and 1998, following a Securities and Exchange Commission review of acquisition-related charges.
On February 25, 2005, CVS said it was reducing its previously announced fourth-quarter earnings by $40.5million, to reflect the way it accounted for leased properties in its results.
Co-responsibility for opioid crisis
In September 2016, Massachusetts Attorney General
Maura Healey
Maura Tracy Healey (born February 8, 1971) is an American politician and lawyer serving as the Massachusetts Attorney General since January 2015. She is the governor-elect of Massachusetts, having won the 2022 Massachusetts gubernatorial electi ...
announced a $795,000 settlement where CVS agrees to check a state database before filling the prescription for addictive
opioids
Opioids are substances that act on opioid receptors to produce morphine-like effects. Medically they are primarily used for pain relief, including anesthesia. Other medical uses include suppression of diarrhea, replacement therapy for opioid use ...
and other controlled substances. The settlement resolves previous allegations that the drugstore chain failed to provide pharmacists with access to the state of Massachusetts Prescription Monitoring Program (PMP). In July 2020, the attorney general of the Commonwealth of Kentucky filed a lawsuit against CVS alleging that their business practices aided in the advancing of the opioid epidemic.
In November 2021, a federal jury in
Cleveland
Cleveland ( ), officially the City of Cleveland, is a city in the U.S. state of Ohio and the county seat of Cuyahoga County. Located in the northeastern part of the state, it is situated along the southern shore of Lake Erie, across the U.S. ...
found that pharmacies operated by CVS Health,
Walgreens
Walgreen Company, d/b/a Walgreens, is an American company that operates the second-largest pharmacy store chain in the United States behind CVS Health. It specializes in filling prescriptions, health and wellness products, health information, an ...
, and
Walmart
Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarter ...
were liable for contributing to the opioid epidemic in two Ohio counties. The trial lasted six weeks with the jury returning a verdict finding the Ohio pharmacies liable. It was the first trial where pharmacy companies defended themselves amidst the opioid epidemic.
In August 2022, the company was one of three chains ordered to pay damages of $650 million by a
Cleveland
Cleveland ( ), officially the City of Cleveland, is a city in the U.S. state of Ohio and the county seat of Cuyahoga County. Located in the northeastern part of the state, it is situated along the southern shore of Lake Erie, across the U.S. ...
judge in a lawsuit over opioid sales brought on by
Lake County and
Trumbull County
Trumbull County is a county in the far northeast portion of U.S. state of Ohio. As of the 2020 census, the population was 201,977. Its county seat is Warren, which developed industry along the Mahoning River. Trumbull County is part of the ...
in
Ohio
Ohio () is a state in the Midwestern region of the United States. Of the fifty U.S. states, it is the 34th-largest by area, and with a population of nearly 11.8 million, is the seventh-most populous and tenth-most densely populated. The sta ...
. The other two chains were
Walgreens
Walgreen Company, d/b/a Walgreens, is an American company that operates the second-largest pharmacy store chain in the United States behind CVS Health. It specializes in filling prescriptions, health and wellness products, health information, an ...
and
Walmart
Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarter ...
, with two others,
Rite Aid
Rite Aid Corporation is an American drugstore chain based in Philadelphia, Pennsylvania. It was founded in 1962 in Scranton, Pennsylvania, by Alex Grass under the name Thrift D Discount Center. The company ranked No. 148 in the Fortune 500 lis ...
and
Giant Eagle
Giant Eagle, Inc. (Western Pennsylvania English: ) and stylized as giant eagle) is an American supermarket chain with stores in Pennsylvania, Ohio, West Virginia, Indiana, and Maryland. The company was founded in 1918 in Pittsburgh, Pennsylv ...
, settling before going to trial. Lawyers representing the counties claimed damages of $3.3 billion.
CFI lawsuit for consumer fraud
In July 2018, the
Center for Inquiry
The Center for Inquiry (CFI) is a US nonprofit organization that works to mitigate belief in pseudoscience and the paranormal, as well as to fight the influence of religion in government.
History
The Center for Inquiry was established in 199 ...
filed a lawsuit against CVS for consumer fraud over its sale of homeopathic medicines. The filing in part contends that apart from being a waste of money, choosing homeopathic treatments to the exclusion of evidence-based medicines can result in worsened or prolonged symptoms, and in some cases, even death.
See also
*
Express Scripts
*
Rite Aid
Rite Aid Corporation is an American drugstore chain based in Philadelphia, Pennsylvania. It was founded in 1962 in Scranton, Pennsylvania, by Alex Grass under the name Thrift D Discount Center. The company ranked No. 148 in the Fortune 500 lis ...
*
Walgreens
Walgreen Company, d/b/a Walgreens, is an American company that operates the second-largest pharmacy store chain in the United States behind CVS Health. It specializes in filling prescriptions, health and wellness products, health information, an ...
References
External links
*
{{DEFAULTSORT:Cvs Caremark
2007 establishments in Rhode Island
American companies established in 2007
Companies based in Providence County, Rhode Island
Companies listed on the New York Stock Exchange
Health care companies based in Rhode Island
Health care companies established in 2007
Pharmacies of the United States
Pharmacy benefit management companies based in the United States
Retail companies established in 2007
Specialty drugs
Woonsocket, Rhode Island