CVS Caremark

Last updated

CVS Caremark
Formerly
  • MedPartners, Inc. (1993–2000)
  • Caremark Rx (2000–2014)
Company type Subsidiary
Industry Healthcare
Founded Birmingham, Alabama, United States (1993 (1993))
Headquarters
Woonsocket, Rhode Island
,
United States
Area served
Nationwide
Key people
David Joyner (President)
ProductsPrescription benefit management
RevenueIncrease2.svg US$36.7 billion (2006)
Number of employees
13,628 (2005)
Parent CVS Health
Website www.caremark.com OOjs UI icon edit-ltr-progressive.svg

CVS Caremark (formerly Caremark Rx) (stylized as Heart corazon.svg CVScaremark, previously CVS/caremark) is the pharmacy benefit management subsidiary of CVS Health, headquartered in Woonsocket, Rhode Island.

Contents

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 1995. [3] In August 1995, MedPartners announced the acquisition of Mullikin Medical Enterprises, a physician management company. [3] In December 1995, MedPartners acquired Pacific Physicians Services in Redlands, California. [4]

On May 15, 1996, Caremark International, a provider of manager health services, announced it would be acquired by MedPartners. [5] [6] Caremark International was founded as a unit of Baxter International and was spun off from Baxter in 1992 as a publicly traded company. [5]

In October 1997, PhyCor, announced they would acquire MedPartners for $8 billion in stock and assumed debt. [7] 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. [8]

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. [9] [10] In 1998, Edwin "Mac" Crawford became the new president and CEO of MedPartners. [11] [12] After taking over, Crawford announced that MedPartners was exiting its PPM business and refocusing on its PBM business. [11]

2000 to present

In 2000, MedPartners changed its name to Caremark Rx. [13]

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

Logo until 2016 CVS Caremark logo.gif
Logo until 2016

In March 2007, Caremark merged with CVS Corporation to create CVS Caremark. [1] [16] [17]

In August 2008, CVS Caremark purchased Longs Drugs Stores for $2.7 billion. [18]

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. [19] 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. [20]

In 2013, CVS Caremark announced the acquisition of Coram LLC, a drug infusion business, for $2.1 billion. [21]

In 2014, the corporate name for CVS Caremark became CVS Health, with CVS Caremark becoming a subsidiary. [22]

In May 2018, a whistleblower lawsuit was filed against CVS Caremark alleging fraud by[ who? ]. [23] The whistleblower alleged that CVS Caremark was charging Medicaid and Medicare customers more for their prescriptions than was appropriate. [23] [24]

In January 2019, Walmart announced that it would no longer use CVS Caremark as its pharmacy benefit manager. [25]

In January 2020, CVS Caremark announced RxZero, a program that would allow patients with diabetes to pay no copays. [26] In February 2020, Alan Lotvin was appointed president of CVS Caremark. [27]

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References

  1. 1 2 3 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.
  2. ↑ Freudenheim, Milt (December 13, 1995). "In a New Merger, Medpartner Expands Physician Network". The New York Times. ISSN   0362-4331 . Retrieved August 31, 2021.
  3. 1 2 Dobrzynski, Judith H. (August 16, 1995). "Physician Management Merger Deal". The New York Times. ISSN   0362-4331 . Retrieved August 31, 2021.
  4. ↑ Freudenheim, Milt (December 13, 1995). "In a New Merger, Medpartner Expands Physician Network". The New York Times. ISSN   0362-4331 . Retrieved August 31, 2021.
  5. 1 2 Hutchcraft, Chuck (May 15, 1996). "Caremark Sold for $2.5 Billon". Chicago Tribune . Retrieved June 18, 2020.
  6. ↑ Freudenheim, Milt (May 14, 1996). "Caremark and Medpartners Seen Merging". The New York Times. ISSN   0362-4331 . Retrieved August 31, 2021.
  7. ↑ Olmos, David (October 30, 1997). "PhyCor Plans to Acquire MedPartners". Los Angeles Times. Retrieved June 18, 2020.
  8. ↑ MedPartners, Phycor Cancel Merger Agreement - Memphis Business Journal. Bizjournals.com (1998-01-08). Retrieved on 2013-09-05.
  9. ↑ Milazzo, Don (September 26, 1999). "Caremark Rx slashes 200 jobs in huge corporate turnaround". Birmingham Business Journal. Retrieved April 8, 2020.
  10. ↑ "Head Rolls at MedPartners - Jan. 19, 1998". money.cnn.com. Retrieved April 8, 2020.
  11. 1 2 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 April 8, 2020.
  12. ↑ Martinez, Barbara (May 10, 2006). "For Caremark's Chief Executive, Outsize Rewards". Wall Street Journal. ISSN   0099-9660 . Retrieved August 31, 2021.
  13. ↑ Park, Jennifer (January 2, 2000). "MedPartners emerges from woes as Caremark". Birmingham Business Journal. Retrieved April 8, 2020.
  14. ↑ 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.
  15. ↑ Martinez, Barbara (May 10, 2006). "For Caremark's Chief Executive, Outsize Rewards". Wall Street Journal. ISSN   0099-9660 . Retrieved April 9, 2020.
  16. ↑ "CVS Caremark, Form 8-K, Current Report, Filing Date Mar 23, 2007" (PDF). SECDatabase.com. Retrieved March 29, 2013.
  17. ↑ Harris, Pat (March 16, 2007). "CVS Finally Wins Caremark for $24 Bln". Reuters. Retrieved August 31, 2021.
  18. ↑ "CVS Caremark Buys Longs Drug Stores". NBC News. Retrieved August 31, 2021.
  19. ↑ "CVS to pay $2 million over alleged HIPAA violations". Modern Healthcare. August 2, 2007. Retrieved August 31, 2021.
  20. ↑ "CVS to reimburse buyers of its AirShield supplements". Los Angeles Times. September 9, 2009. Archived from the original on August 31, 2021. Retrieved August 31, 2021.
  21. ↑ Pisani, Joseph. "CVS Caremark to Buy Coram for $2.1 Billion". USA Today. Retrieved August 31, 2021.
  22. ↑ "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.
  23. 1 2 "Aetna Suspends Whistleblower in CVS Fraud Case after She Refused to Destroy Documents". FierceHealthcare. May 18, 2018. Retrieved August 31, 2021.
  24. ↑ Sullivan, Lucas. "Aetna Whistleblower, Who Says CVS Gouged Medicare and Medicaid Customers, Is Put on Leave". The Columbus Dispatch. Retrieved August 31, 2021.
  25. ↑ "Walmart Drops CVS Pharmacy Coverage in Price Dispute". Washington Post. ISSN   0190-8286 . Retrieved August 31, 2021.
  26. ↑ Campbell, Todd. "CVS Caremark announces plan to eliminate out-of-pocket costs for diabetes drugs". USA Today. Retrieved August 31, 2021.
  27. ↑ "CVS Health Appoints Alan Lotvin as President of CVS Caremark". RTTNews. Retrieved June 18, 2020.
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