CVS Health is planning a major shake-up that would split the company into two separate businesses, separating its well-known retail pharmacies from its health insurance and healthcare services operations.
The company announced the plan Wednesday, Nov. 4, saying the move is intended to give each business more focus and flexibility as it works to make healthcare more affordable and accessible.
Under the proposed plan, one company would focus on healthcare services and insurance, while the other would operate CVS’s nearly 9,000 retail pharmacy locations across the country.
One company would handle health insurance and healthcare services.
The first company would bring together several of CVS Health’s existing businesses, including Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health.
That business would focus on health insurance, prescription drug benefits, specialty medications, and healthcare services, including primary care and in-home care.
David Joyner, CVS Health’s current chairman and CEO, would lead this company.
The second company would focus on CVS pharmacies and retail healthcare.
The other company would be called CVS Pharmacy.
It would include approximately 9,000 CVS retail pharmacy locations, its mail-order pharmacy services and MinuteClinic locations, which provide walk-in and virtual healthcare services.
The company would also include Health100, its technology services business.
Prem Shah, CVS Health’s current group president, would serve as CEO of CVS Pharmacy.
For now, customers should not expect immediate changes.
CVS Health says the planned separation will not interrupt access to prescriptions, healthcare services, insurance benefits or other customer services.
The company will continue operating as it does today while the separation process moves forward.
CVS Health expects the split to be completed during the first half of 2028, pending necessary approvals and other regulatory requirements.
Once the separation is complete, current CVS Health shareholders are expected to own shares in both companies.
Company leaders say separating the businesses would allow each company to focus on its own priorities, make independent investments and respond more quickly to changes in the healthcare industry.
The announcement follows a strategic review by CVS Health’s board of directors.
The company says the goal is to simplify the healthcare experience, improve affordability and expand access to services.
For now, the proposed split is still in the planning stages, and CVS Health says it will release additional details as the process moves forward.
