2 hours ago - Economy

CVS is breaking up its health-care empire

Dan Primack

Illustration: Shoshana Gordon/Axios

CVS Health on Wednesday announced plans to split its health and pharmacy services businesses into two, independent public companies.

Why it matters: This is the dismantling of an integrated health empire that CVS has spent decades building, often through large acquisitions.

Zoom in: CVS Health will be a health-care services company that includes insurance giant Aetna, value-based care group Oak Street Health, pharmacy benefit manager CVS Caremark, and at-home care group Signify Health.

CVS Pharmacy will consist of the physical retail pharmacies, mail pharmacy, MinuteClinic urgent care, and health navigation and engagement platform Health100.
The company said it expects the split to occur by the first half of 2028.

Catch up quick: CVS rival Walgreens was broken up into five separate businesses by new owner Sycamore Partners, which then sold off the Boots pharmacy chain.

Ballot box: Helena Foulkes, former president of CVS Pharmacy, last night was elected governor of Rhode Island.

The bottom line: The era of health-care vertical integration is in the rearview, with a Democrat-controlled Congress more than happy to put its foot on the gas.

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CVS is breaking up its health-care empire

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