CVS Caremark

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This article is about the healthcare management company. For the company formerly called CVS Caremark, see CVS Health.
CVS Caremark
Formerly
  • MedPartners, Inc. (1993–2000)
  • Caremark Rx (2000–2014)
TypeSubsidiary
IndustryHealthcare
FoundedBirmingham, Alabama, United States (1993 (1993))
Headquarters
Woonsocket, Rhode Island
,
United States
Area served
Nationwide
Key people
Alan Lotvin (President)
ProductsPrescription benefit management
RevenueIncrease US$36.7 billion (2006)
Number of employees
13,628 (2005)
ParentCVS Health

CVS Caremark (formerly Caremark Rx) (stylized as Heart corazón.svgCVScaremark, 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 pharmacy benefits management company in 1993.[1] It was founded in Birmingham, Alabama as MedPartners, Inc. by former HealthSouth Corporation chief executive Richard Scrushy.[1] New Enterprise Associates was an initial investor in the company.[2] MedPartners went public in February of 1995.[3] In August 1995, MedPartners announced the acquisition of Mullikin Medical Enterprises, a physician management company.[4] In December 1995, MedPartners acquired Pacific Physicians Services in Redlands, California.[5]

On May 15, 1996, Caremark International, a provider of manager health services, announced it would be acquired by MedPartners.[6][7] Caremark International was founded as a unit of Baxter International and was spun off from Baxter in 1992 as a publicly traded company.[6]

In October 1997, , announced they would acquire MedPartners for $8 billion in stock and assumed debt.[8] However, the merger agreement was terminated in January 1998, with the companies citing significant operational and strategic differences as the reason for the termination of the merger.[9]

In January 1998, Chairman, President and CEO Larry House left the company and Richard Scrushy took over as chairman and acting CEO of the company.[10][11] In 1998, Edwin "Mac" Crawford became the new president and CEO of MedPartners.[12][13] After taking over, Crawford announced that MedPartners was exiting its PPM business and refocusing on its PBM business.[12]

2000 to Present[]

In 2000, MedPartners changed its name to Caremark Rx.[14] In 2003, it merged with AdvancePCS.[15] That same year, Caremark moved its headquarters from Birmingham, Alabama, to Nashville, Tennessee.[16]

In March 2007, Caremark merged with CVS Corporation to create CVS Caremark.[17][18][19] In August 2008, CVS Caremark purchased Longs Drugs Stores for $2.7 billion.[20]

In 2009, CVS Caremark agreed to pay $2.25 million to settle alleged unfair trade practices and alleged violations of the privacy protections under the Health Insurance Portability and Accountability Act of 1996.[21] Also in 2009, CVS Caremark agreed to repay $2.8 million to consumers who purchased AirShield tablets and powders, which were marketed as being able to prevent illness, after it was alleged that the marketing for the product made misleading claims.[22]

In 2013, CVS Caremark announced the acquisition of Coram LLC, a drug infusion business, for $2.1 billion.[23] In 2014, the corporate name for CVS Caremark became CVS Health, with CVS Caremark becoming a subsidiary.[24] In May 2018, a whistleblower lawsuit was filed against CVS Caremark alleging fraud by.[25] The whistleblower alleged that CVS Caremark was charging Medicaid and Medicare customers more for their prescriptions than was appropriate.[25][26]

In January 2019, Walmart announced that it would no longer use CVS Caremark as its pharmacy benefit manager.[27] In January 2020, CVS Caremark announced RxZero, a program that would allow patients with diabetes to pay no copays.[28] In February 2020, Alan Lotvin was appointed president of CVS Caremark.[29]

Logo until 2016

Notes[]

  1. ^ a b Sorkin, Andrew Ross (2006-11-01). "CVS to Buy Caremark in All-Stock Deal". The New York Times. ISSN 0362-4331. Retrieved 2021-08-31.
  2. ^ Freudenheim, Milt (1995-12-13). "In a New Merger, Medpartner Expands Physician Network". The New York Times. ISSN 0362-4331. Retrieved 2021-08-31.
  3. ^ Dobrzynski, Judith H. (1995-08-16). "Physician Management Merger Deal". The New York Times. ISSN 0362-4331. Retrieved 2021-08-31.
  4. ^ Dobrzynski, Judith H. (1995-08-16). "Physician Management Merger Deal". The New York Times. ISSN 0362-4331. Retrieved 2021-08-31.
  5. ^ Freudenheim, Milt (1995-12-13). "In a New Merger, Medpartner Expands Physician Network". The New York Times. ISSN 0362-4331. Retrieved 2021-08-31.
  6. ^ a b Hutchcraft, Chuck (15 May 1996). "CAREMARK SOLD FOR $2.5 BILLION". chicagotribune.com. Retrieved 2020-06-18.
  7. ^ Freudenheim, Milt (1996-05-14). "Caremark and Medpartners Seen Merging". The New York Times. ISSN 0362-4331. Retrieved 2021-08-31.
  8. ^ Olmos, David (1997-10-30). "PhyCor Plans to Acquire MedPartners". Los Angeles Times. Retrieved 2020-06-18.
  9. ^ MedPartners, Phycor Cancel Merger Agreement - Memphis Business Journal. Bizjournals.com (1998-01-08). Retrieved on 2013-09-05.
  10. ^ Milazzo, Don (26 September 1999). "Caremark Rx slashes 200 jobs in huge corporate turnaround". Birmingham Business Journal. Retrieved 2020-04-08.
  11. ^ "Head rolls at MedPartners - Jan. 19, 1998". money.cnn.com. Retrieved 2020-04-08.
  12. ^ a b Freudenheim, Milt (1998-11-12). "Medpartners Plans to Divest Itself of the Business of Physician Practice Management". The New York Times. ISSN 0362-4331. Retrieved 2020-04-08.
  13. ^ Martinez, Barbara (2006-05-10). "For Caremark's Chief Executive, Outsize Rewards". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-08-31.
  14. ^ Park, Jennifer (2 January 2000). "MedPartners emerges from woes as Caremark". Birmingham Business Journal. Retrieved 2020-04-08.
  15. ^ Sidel, Robin (2003-09-03). "Caremark to Buy Rival AdvancePCS In $5.6 Billion Pact". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-06-18.
  16. ^ Martinez, Barbara (2006-05-10). "For Caremark's Chief Executive, Outsize Rewards". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-04-09.
  17. ^ "CVS Caremark, Form 8-K, Current Report, Filing Date Mar 23, 2007" (PDF). secdatabase.com. Retrieved Mar 29, 2013.
  18. ^ Sorkin, Andrew Ross (2006-11-01). "CVS to Buy Caremark in All-Stock Deal". The New York Times. ISSN 0362-4331. Retrieved 2021-08-31.
  19. ^ Harris, Pat (2007-03-16). "CVS finally wins Caremark for $24 bln". Reuters. Retrieved 2021-08-31.
  20. ^ "CVS Caremark buys Longs Drug Stores". NBC News. Retrieved 2021-08-31.
  21. ^ "CVS to pay $2 million over alleged HIPAA violations". Modern Healthcare. 2007-08-02. Retrieved 2021-08-31.
  22. ^ "CVS to reimburse buyers of its AirShield supplements". Los Angeles Times. 2009-09-09. Archived from the original on 2021-08-31. Retrieved 2021-08-31.
  23. ^ Pisani, Joseph. "CVS Caremark to buy Coram for $2.1 billion". USA TODAY. Retrieved 2021-08-31.
  24. ^ "CVS Caremark changes its name to CVS Health - The Boston Globe". BostonGlobe.com. Archived from the original on 2014-09-04. Retrieved 2021-08-31.
  25. ^ a b "Aetna suspends whistleblower in CVS fraud case after she refused to destroy documents". FierceHealthcare. Retrieved 2021-08-31.
  26. ^ Sullivan, Lucas. "Aetna whistleblower, who says CVS gouged Medicare and Medicaid customers, is put on leave". The Columbus Dispatch. Retrieved 2021-08-31.
  27. ^ "Walmart drops CVS pharmacy coverage in price dispute". Washington Post. ISSN 0190-8286. Retrieved 2021-08-31.
  28. ^ Campbell, Todd. "CVS Caremark announces plan to eliminate out-of-pocket costs for diabetes drugs". USA TODAY. Retrieved 2021-08-31.
  29. ^ "CVS Health Appoints Alan Lotvin As President Of CVS Caremark". RTTNews. Retrieved 2020-06-18.

External links[]

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