CVS Caremark

Last updated
CVS Caremark
Formerly
  • MedPartners, Inc. (1993-2000)
  • Caremark Rx (2000-2014)
Subsidiary
Industry Healthcare
Founded Birmingham, Alabama, United States (1993 (1993))
Headquarters,
United States
Area served
Nationwide
Key people
(President)
ProductsPrescription Benefit Management
RevenueIncrease2.svg US$36.7 billion (2006)
Number of employees
13,628 (2005)
Parent CVS Health
Website caremark.com   Blue pencil.svg

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

In the United States, a pharmacy benefit manager (PBM) is a third-party administrator of prescription drug programs for commercial health plans, self-insured employer plans, Medicare Part D plans, the Federal Employees Health Benefits Program, and state government employee plans. According to the American Pharmacists Association, "PBMs are primarily responsible for developing and maintaining the formulary, contracting with pharmacies, negotiating discounts and rebates with drug manufacturers, and processing and paying prescription drug claims. For the most part, they work with self-insured companies and government programs striving to maintain or reduce the pharmacy expenditures of the plan while concurrently trying to improve health care outcomes." PBMs operate inside of integrated healthcare systems, as part of retail pharmacies, and as part of insurance companies.

CVS Health American healthcare company

CVS Health Corporation is an American retail pharmacy and Pharmacy Benefit Manager headquartered in Woonsocket, Rhode Island. Consumer Value Stores (CVS) began in 1963 with three partners, brothers Stanley and Sidney Goldstein and partner Ralph Hoagland, who grew the venture from a parent company, Mark Steven, Inc., that helped retailers manage their health and beauty aid product lines. The business began as a chain of health and beauty aid stores, but within several years, pharmacies were added. To facilitate growth and expansion, the company joined The Melville Corporation, which managed a string of retail businesses. Following a period of growth in the 1980s and 1990s, CVS Corporation spun off from Melville in 1996, becoming a standalone company trading on the New York Stock Exchange as CVS.

Woonsocket, Rhode Island City in Rhode Island, United States

Woonsocket is a city in Providence County, Rhode Island, United States. The population was 41,186 at the 2010 census, making it the sixth largest city in the state. Woonsocket lies directly south of the Massachusetts state line and constitutes part of both the Providence metropolitan area and the larger Greater Boston Combined Statistical Area.

Contents

Company history

Caremark was founded in 1993 in Birmingham, Alabama as MedPartners, Inc. by HealthSouth Corporation along with Richard Scrushy, former CEO of HealthSouth, and one time HealthSouth Chief Operating Officer Larry House as a physician practice management (PPM) company. After going public in February 21 of 1995, MedPartners quickly became the largest PPM company through many acquisitions (see Ross-Loos Medical Group). By 1998 MedPartner's had revenues of $7 billion.

Birmingham, Alabama Most populous city in Alabama, United States

Birmingham is a city in the north central region of the U.S. state of Alabama. With an estimated 2017 population of 210,710, it is the most populous city in Alabama. Birmingham is the seat of Jefferson County, Alabama's most populous and fifth largest county. As of 2017, the Birmingham-Hoover Metropolitan Statistical Area had a population of 1,149,807, making it the most populous in Alabama and 49th-most populous in the United States. Birmingham serves as an important regional hub and is associated with the Deep South, Piedmont, and Appalachian regions of the nation.

Richard Marin Scrushy is an American businessman and convicted felon. He is the founder of HealthSouth Corporation, a global healthcare company based in Birmingham, Alabama.

Ross-Loos Medical Group was a comprehensive prepaid health services plan with 29 medical offices throughout Los Angeles, Orange, Riverside, and San Bernardino Counties in California and a large multi-specialty hospital located on Temple Street, Los Angeles.

MedPartners originally acquired Northbrook, Illinois-based Caremark International, which was founded as a unit of Baxter International and was spun off from Baxter in 1992 as a publicly traded company. On May 15, 1996, Caremark International announced it would be acquired by MedPartners with MedPartners ending up with Caremark's PPM division and prescription benefit management (PBM) division and disposing of Caremark's rehabilitation Business to HealthSouth. It expanded to the distribution of drugs for other conditions, including human growth hormone and multiple sclerosis.

Northbrook, Illinois Village in Illinois, United States

Northbrook is a suburb of Chicago, located at the northern edge of Cook County, Illinois, United States.

Baxter International Inc. is a Fortune 500 American health care company with headquarters in Deerfield, Illinois. The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions. The company had 2017 sales of $10.6 billion, across two businesses: BioScience and Medical Products. Baxter's BioScience business produces recombinant and blood plasma proteins to treat hemophilia and other bleeding disorders; plasma-based therapies to treat immune deficiencies and other chronic and acute blood-related conditions; products for regenerative medicine, and vaccines. Baxter's Medical Products business produces intravenous products and other products used in the delivery of fluids and drugs to patients; inhalational anaesthetics; contract manufacturing services; and products to treat end-stage renal disease, or irreversible kidney failure, including products for peritoneal dialysis and hemodialysis.

Multiple sclerosis disease that damages the myelin sheaths around nerve axons

Multiple sclerosis (MS) is a demyelinating disease in which the insulating covers of nerve cells in the brain and spinal cord are damaged. This damage disrupts the ability of parts of the nervous system to communicate, resulting in a range of signs and symptoms, including physical, mental, and sometimes psychiatric problems. Specific symptoms can include double vision, blindness in one eye, muscle weakness, trouble with sensation, or trouble with coordination. MS takes several forms, with new symptoms either occurring in isolated attacks or building up over time. Between attacks, symptoms may disappear completely; however, permanent neurological problems often remain, especially as the disease advances.

In October 1997, PhyCor, the second largest PPM at the time, announced they would be acquiring MedPartners for $8 billion in stock and assumed debt. However the merger agreement was terminated in January 1998. The companies cited significant operational and strategic differences as the reason for the termination of the merger. [1] MedPartners then announced that they would suffer a net loss of $841 million for the 4th quarter of 1997. [2] Chairman, President and CEO Larry House resigned, with Richard Scrushy taking over as interim chairman, president and CEO. Scrushy announced that he would not change his role at HealthSouth as a result of him taking over at MedPartners. On March 18, 1998, Scrushy chose Edwin "Mac" Crawford to become the new president and CEO of MedPartners. Scrushy remained as chairman until November 1998, but remained on the board. After taking over, Mac Crawford announced that MedPartners was exiting its PPM business and refocusing on its PBM business. In 2000, after it had sold all of its PPM practices, MedPartners changed its name to Caremark Rx. In 2001 Scrushy sold his remaining shares in Caremark and left its board to continue as chairman and CEO of HealthSouth.

In 2003 it merged with AdvancePCS seen as a key move in ensuring the growth and profitability of the company. By retaining key leaders from the AdvancePCS organization, and adopting many of its key principles, Caremark Rx was able to bolster its position within the PBM industry.

AdvancePCS Inc. was a large prescription benefit plan administrator from the United States, also known as a PBM.

In 2004, Caremark moved its headquarters from Birmingham, Alabama, to Nashville, Tennessee, where the company only maintains a small executive staff. The company still has a large presence in Birmingham. Many believed the move was an effort to hide the company's HealthSouth past due to the fact the company announced the move not long after the HealthSouth scandal. There is recent speculation that the company will close its relatively small Nashville office and combine it with its operational office in Northbrook, Illinois.

Alabama State of the United States of America

Alabama is a state in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama is the 30th largest by area and the 24th-most populous of the U.S. states. With a total of 1,500 miles (2,400 km) of inland waterways, Alabama has among the most of any state.

Nashville, Tennessee State capital and consolidated city-county in Tennessee, United States

Nashville is the capital and most populous city of the U.S. state of Tennessee. The city is the county seat of Davidson County and is located on the Cumberland River. The city's population ranks 24th in the U.S. According to 2017 estimates from the U.S. Census Bureau, the total consolidated city-county population stood at 691,243. The "balance" population, which excludes semi-independent municipalities within Davidson County, was 667,560 in 2017.

Tennessee State of the United States of America

Tennessee is a state located in the southeastern region of the United States. Tennessee is the 36th largest and the 16th most populous of the 50 United States. Tennessee is bordered by Kentucky to the north, Virginia to the northeast, North Carolina to the east, Georgia, Alabama, and Mississippi to the south, Arkansas to the west, and Missouri to the northwest. The Appalachian Mountains dominate the eastern part of the state, and the Mississippi River forms the state's western border. Nashville is the state's capital and largest city, with a 2017 population of 667,560 and a 2017 metro population of 1,903,045. Tennessee's second largest city is Memphis, which had a population of 652,236 in 2017.

Caremark currently has approximately 16,000 employees.

It is the second largest prescription management and pharmaceutical services business in the United States.

In March 2007, Caremark merged with CVS Corporation to create CVS Caremark, later re-branded as CVS Health. [3]

Logo until 2016 CVS Caremark logo.gif
Logo until 2016

Today the company is one of the nation's leading pharmacy benefit management (PBM) companies, provides comprehensive prescription benefit management services to over 2,000 health plans, including corporations, managed care organizations, insurance companies, unions and government entities. With net revenue of approximately $37 billion (including approximately $5.8 billion of retail copayments) in 2006, they are also one of the largest PBMs. Caremark operates a national retail pharmacy network with over 60,000 participating pharmacies, as well as 56 retail specialty pharmacy stores, 20 specialty mail order pharmacies and 9 mail service pharmacies located in 26 states and the District of Columbia.

Notes

  1. MedPartners, Phycor Cancel Merger Agreement - Memphis Business Journal. Bizjournals.com (1998-01-08). Retrieved on 2013-09-05.
  2. Mac Crawford: Definition from. Answers.com. Retrieved on 2013-09-05.
  3. "CVS Caremark, Form 8-K, Current Report, Filing Date Mar 23, 2007" (PDF). secdatabase.com. Retrieved Mar 29, 2013.

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