CVS Caremark (formerly Caremark Rx) is the pharmacy benefit management subsidiary of CVS Health, headquartered in Woonsocket, Rhode Island.
Company history
Early years
CVS Caremark was founded as MedPartners, Inc. in 1993 in Birmingham, Alabama by several local businessmen as a physician practice management (PPM) company. [1] HealthSouth, New Enterprise Associates, and Richard M. Scrushy stepped in to provide the company with early financial backing.[1] [2] Larry House, an executive at HealthSouth, was brought on to serve as the company's first CEO.
MedPartners went public in February 1995 and began buying up other PPM business around the country.[3] In August 1995, MedPartners announced the acquisition of Mullikin Medical Enterprises, a PPM company based in California. [3] In December 1995, MedPartners acquired Pacific Physicians Services, a PPM company based in Redlands, California.[4]
The company continued to grow by acquiring physician practice groups, including the Kelsey-Seybold Clinic in Houston, Texas, the Summit Medical Group in Summit, New Jersey, and the Ross–Loos Medical Group in Los Angeles, California. By 1996, MedPartners was the largest PPM company in the United States.
Caremark International
Caremark International was founded in 1979 in Newport Beach, California as a provider of specialized medical services and products to chronically ill patients at home.[5] It also operated the second largest mail-order pharmacy benefit management (PBM) business in country.[6] Baxter International, then known as Baxter Travenol, acquired Caremark in 1987.[5] Baxter spun off Caremark in 1992 and based it in Northbrook, Illinois, near Baxter's Deerfield headquarters.[7] Included in the spin-off was the at-home intravenous drug business, the mail-order pharmacy business, the physician practice management business, and Baxter's chain of physical therapy and sports medicine clinics.[7] Caremark sold its at-home intravenous drug business to Coram in February 1995 followed by its physical therapy and sports medicine business to HealthSouth later that year in October.[8] [9] MedPartners announced it would acquire Caremark for $2.5 billion in May 1996.[10] [11]
Canceled merger and PPM exit
MedPartners announced in October 1997 it was being acquired for $6.8 billion by PhyCor, a smaller PPM competitor based in Nashville, Tennessee.[12] PhyCor called off the merger in January 1998 after problems were discovered with MedPartners' western PPM operations during due diligence.[12] Larry House resigned as chairman and CEO several weeks later. Richard Scrushy, a MedPartners' board member, stepped in as interim chairman and CEO while continuing to serve as chairman and CEO of HealthSouth.[13] In March, Edwin "Mac" Crawford was selected by the board of directors as MedPartners' new CEO.[13] Scrushy retained the chairman role until December 1998 when he relinquished it to Crawford.[13]
MedPartners board of directors conducted a review of its businesses after the failed merger and decided to sell the PPM business and focus on growing the Caremark PBM business, which accounted for $2.3 billion of MedPartners $6.3 billion in revenue in 1997.[14] MedPartners also sold its hospital-based physician-management unit, Team Health, to Madison Dearborn Partners and Team Health's management team in 1999.[15]
In 2000, after completing the sales of its physician management business, MedPartners changed its name to Caremark Rx, Inc. to reflect the name of its only business unit.[16]
Caremark Rx
In 2003, it merged with AdvancePCS.[17] That same year, Caremark moved its headquarters from Birmingham, Alabama, to Nashville, Tennessee.[18] Following its merger with AdvancePCS, the company continued to operate a 500 employee mail-order pharmacy operation in Birmingham until 2010.[19]
In March 2007, Caremark merged with CVS Corporation to create CVS Caremark.[1][20][21] The Nashville office was closed following the merger.
In 2014, the corporate name for CVS Caremark became CVS Health, with CVS Caremark becoming a subsidiary.[22]
In January 2019, Walmart announced that it would no longer use CVS Caremark as its pharmacy benefit manager.[23]
In February 2020, Alan Lotvin was appointed president of CVS Caremark.[24]
References
- ^ a b c Sorkin, Andrew Ross (November 1, 2006). "CVS to Buy Caremark in All-Stock Deal". The New York Times. ISSN 0362-4331. Retrieved August 31, 2021.
- ^ Freudenheim, Milt (December 13, 1995). "In a New Merger, Medpartner Expands Physician Network". The New York Times. ISSN 0362-4331. Retrieved August 31, 2021.
- ^ a b Dobrzynski, Judith H. (August 16, 1995). "Physician Management Merger Deal". The New York Times. ISSN 0362-4331. Retrieved August 31, 2021.
- ^ Freudenheim, Milt (December 13, 1995). "In a New Merger, Medpartner Expands Physician Network". The New York Times. ISSN 0362-4331. Retrieved August 31, 2021.
- ^ a b Yoshihashi, Pauline (May 12, 1987). "Travenol, In Stock Deal, Will Acquire Caremark". The New York Times. ISSN 0362-4331. Retrieved February 2, 2025.
- ^ "Caremark Rx, Inc". Encyclopedia.com. Retrieved February 2, 2025.
- ^ a b Feder, Barnaby (December 1, 1992). "Company News; Caremark Share Offer Set at $13.50". The New York Times. ISSN 0362-4331. Retrieved February 2, 2025.
- ^ Burns, John (February 6, 1995). "SALE TO CORAM INFUSES CAREMARK". Modern Healthcare. Retrieved February 4, 2025.
- ^ "HealthSouth Agrees to Acquire Caremark Unit". The New York Times. October 17, 1995. ISSN 0362-4331. Retrieved February 2, 2025.
- ^ Hutchcraft, Chuck (May 15, 1996). "Caremark Sold for $2.5 Billon". Chicago Tribune. Retrieved June 18, 2020.
- ^ Freudenheim, Milt (May 14, 1996). "Caremark and Medpartners Seen Merging". The New York Times. ISSN 0362-4331. Retrieved August 31, 2021.
- ^ a b Morrow, David J. (January 8, 1998). "A Big Merger In Health Care Is Called Off". The New York Times. ISSN 0362-4331. Retrieved February 2, 2025.
- ^ a b c "Scrushy Resigns Chairman Post at Physician Practice Management Firm". Chicago Tribue. October 31, 1998. Retrieved February 2, 2025.
- ^ Freudenheim, Milt (November 12, 1998). "Medpartners Plans to Divest Itself of the Business of Physician Practice Management". The New York Times. ISSN 0362-4331. Retrieved February 2, 2025.
- ^ "Company News; MedPartners Agrees to Sell Doctor-Management Unit". The New York Times. January 28, 1999. ISSN 0362-4331. Retrieved February 2, 2025.
- ^ Park, Jennifer (January 2, 2000). "MedPartners emerges from woes as Caremark". Birmingham Business Journal. Retrieved April 8, 2020.
- ^ Sidel, Robin (September 3, 2003). "Caremark to Buy Rival AdvancePCS in $5.6 Billion Pact". Wall Street Journal. ISSN 0099-9660. Retrieved June 18, 2020.
- ^ Martinez, Barbara (May 10, 2006). "For Caremark's Chief Executive, Outsize Rewards". Wall Street Journal. ISSN 0099-9660. Retrieved April 9, 2020.
- ^ Hubbard, Russell (August 26, 2010). "CVS Caremark closing mail-order pharmacy, denting metro Birmingham medical industry dream". The Birmingham News. Retrieved February 2, 2025.
- ^ "CVS Caremark, Form 8-K, Current Report, Filing Date Mar 23, 2007" (PDF). SECDatabase.com. Retrieved March 29, 2013.
- ^ Harris, Pat (March 16, 2007). "CVS Finally Wins Caremark for $24 Bln". Reuters. Retrieved August 31, 2021.
- ^ "CVS Caremark changes its name to CVS Health - The Boston Globe". BostonGlobe.com. Archived from the original on September 4, 2014. Retrieved August 31, 2021.
- ^ "Walmart Drops CVS Pharmacy Coverage in Price Dispute". Washington Post. ISSN 0190-8286. Retrieved August 31, 2021.
- ^ "CVS Health Appoints Alan Lotvin as President of CVS Caremark". RTTNews. Retrieved June 18, 2020.
