CVS Caremark

CVS Caremark was founded in 1993 as MedPartners, Inc. in Birmingham, Alabama by several local businessmen as a physician practice management (PPM) company.{{Cite web |last=Sorkin |first=Andrew Ross |author-link=Andrew Ross Sorkin |date=November 1, 2006 |title=CVS to Buy Caremark in All-Stock Deal |website=The New York Times |url=https://www.nytimes.com/2006/11/01/business/01cnd-drug.html |access-date=August 31, 2021 |issn=0362-4331 }} HealthSouth, New Enterprise Associates, and Richard M. Scrushy stepped in to provide the company with early financial backing.{{Cite news|last=Freudenheim|first=Milt|date=December 13, 1995 |title=In a New Merger, Medpartner Expands Physician Network |work=The New York Times|url=https://www.nytimes.com/1995/12/13/business/in-a-new-merger-medpartner-expands-physician-network.html|access-date=August 31, 2021 |issn=0362-4331}} 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.{{cite web |last=Dobrzynski |first=Judith H. |date=August 16, 1995 |title=Physician Management Merger Deal |website=The New York Times |url=https://www.nytimes.com/1995/08/16/business/physician-management-merger-deal.html |access-date=August 31, 2021 |issn=0362-4331 }} In August 1995, MedPartners announced the acquisition of Mullikin Medical Enterprises, a PPM company based in California. In December 1995, MedPartners acquired Pacific Physicians Services, a PPM company based in Redlands, California.{{Cite news |last=Freudenheim |first=Milt |date=December 13, 1995 |title=In a New Merger, Medpartner Expands Physician Network |work=The New York Times |url=https://www.nytimes.com/1995/12/13/business/in-a-new-merger-medpartner-expands-physician-network.html |access-date=August 31, 2021 |issn=0362-4331 }}

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 and became a Fortune 500 company the following year.

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.{{Cite news|last=Yoshihashi|first=Pauline|date=May 12, 1987 |title=Travenol, In Stock Deal, Will Acquire Caremark |work=The New York Times|url=https://www.nytimes.com/1987/05/12/business/travenol-in-stock-deal-will-acquire-caremark.html|access-date=February 2, 2025 |issn=0362-4331}} It also operated the second largest mail-order pharmacy benefit management (PBM) business in country.{{Cite web |title=Caremark Rx, Inc. |url=https://www.encyclopedia.com/books/politics-and-business-magazines/caremark-rx-inc |access-date=February 2, 2025 |website=Encyclopedia.com}} Baxter International, then known as Baxter Travenol, acquired Caremark in 1987. Baxter spun off Caremark in 1992 and based it in Northbrook, Illinois, near Baxter's Deerfield headquarters.{{Cite news|last=Feder|first=Barnaby|date=December 1, 1992 |title=Company News; Caremark Share Offer Set at $13.50 |work=The New York Times|url=https://www.nytimes.com/1992/12/01/business/company-news-caremark-share-offer-set-at-13.50.html|access-date=February 2, 2025 |issn=0362-4331}} 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. 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.{{Cite news|last=Burns|first=John|date=February 6, 1995 |title=SALE TO CORAM INFUSES CAREMARK |work=Modern Healthcare|url=https://www.modernhealthcare.com/article/19950206/PREMIUM/502060309/sale-to-coram-infuses-caremark|access-date=February 4, 2025}}{{Cite news|date=October 17, 1995 |title=HealthSouth Agrees to Acquire Caremark Unit |work=The New York Times|url=https://www.nytimes.com/1995/10/17/business/company-news-healthsouth-agrees-to-acquire-caremark-unit.html|access-date=February 2, 2025 |issn=0362-4331}} MedPartners announced it would acquire Caremark for $2.5 billion in May 1996.{{Cite web |last=Hutchcraft |first=Chuck |date=May 15, 1996 |title=Caremark Sold for $2.5 Billon |url=https://www.chicagotribune.com/news/ct-xpm-1996-05-15-9605150360-story.html|access-date=June 18, 2020 |website=Chicago Tribune }}{{Cite news|last=Freudenheim|first=Milt|date=May 14, 1996 |title=Caremark and Medpartners Seen Merging |work=The New York Times|url=https://www.nytimes.com/1996/05/14/business/caremark-and-medpartners-seen-merging.html|access-date=August 31, 2021 |issn=0362-4331}}

MedPartners announced in October 1997 it would be acquired by PhyCor, Inc., a much smaller PPM competitor based in Nashville, Tennessee, for $6.8 billion.{{Cite news|last=Morrow|first=David J.|date=January 8, 1998 |title=A Big Merger In Health Care Is Called Off |work=The New York Times|url=https://www.nytimes.com/1998/01/08/business/a-big-merger-in-health-care-is-called-off.html|access-date=February 2, 2025 |issn=0362-4331}} MedPartners and PhyCor called off the merger in January 1998 after problems were discovered during due diligence with MedPartners' western PPM operations. 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.{{Cite news|date=October 31, 1998 |title=Scrushy Resigns Chairman Post at Physician Practice Management Firm|work=Chicago Tribue|url=https://www.chicagotribune.com/1998/10/31/scrushy-resigns-chairman-post-at-physician-management-firm/|access-date=February 2, 2025}} In March, Edwin "Mac" Crawford was selected by the board of directors as MedPartners' new CEO. Scrushy retained the chairman role until December 1998 when he relinquished it to Crawford.

MedPartners board of directors conducted a review of its businesses after the failed merger and decided to sell the clinics that made up the PPM business and focus on growing the Caremark PBM business, which accounted for $2.3 billion of MedPartners $6.3 billion total revenue for 1997.{{Cite news|last=Freudenheim|first=Milt|date=November 12, 1998 |title=Medpartners Plans to Divest Itself of the Business of Physician Practice Management |work=The New York Times|url=https://www.nytimes.com/1998/11/12/business/medpartners-plans-divest-itself-business-physician-practice-management.html|access-date=February 2, 2025 |issn=0362-4331}} MedPartners also sold its hospital-based physician-management unit, Team Health, to Madison Dearborn Partners and Team Health's management team in 1999.{{Cite news|date=January 28, 1999 |title=Company News; MedPartners Agrees to Sell Doctor-Management Unit |work=The New York Times|url=https://www.nytimes.com/1999/01/28/business/company-news-medpartners-agrees-to-sell-doctor-management-unit.html |access-date=February 2, 2025 |issn=0362-4331}}

In 2000, after completing the sales of its clinics tied to the physician management business, MedPartners changed its name to Caremark Rx, Inc. to reflect the name of its only business unit.{{Cite web|url=https://www.bizjournals.com/birmingham/stories/2000/01/03/focus7.html|title=MedPartners emerges from woes as Caremark|last=Park|first=Jennifer|date=January 2, 2000|website=Birmingham Business Journal|access-date=April 8, 2020 }}

In 2003, it merged with AdvancePCS.{{Cite news|last=Sidel|first=Robin|date=September 3, 2003 |title=Caremark to Buy Rival AdvancePCS in $5.6 Billion Pact |work=Wall Street Journal|url=https://www.wsj.com/articles/SB106254190768687200|access-date=June 18, 2020 |issn=0099-9660}} That same year, Caremark moved its headquarters from Birmingham, Alabama, to Nashville, Tennessee.{{Cite web |last=Martinez|first=Barbara|url=https://www.wsj.com/articles/SB114713754457347376|title=For Caremark's Chief Executive, Outsize Rewards|date=May 10, 2006 |work=Wall Street Journal|access-date=April 9, 2020 |issn=0099-9660}} Following its merger with AdvancePCS, the company continued to operate a mail-order pharmacy operation in Birmingham that employed 500 people until 2010.{{Cite web |last=Hubbard|first=Russell|url=https://www.al.com/businessnews/2010/08/cvs_caremark_closing_mail-orde_1.html |title=CVS Caremark closing mail-order pharmacy, denting metro Birmingham medical industry dream |date=August 26, 2010 |work=The Birmingham News|access-date=February 2, 2025}}

In March 2007, Caremark merged with CVS Corporation to create CVS Caremark.{{cite web |url=http://pdf.secdatabase.com/1280/0000950103-07-000726.pdf |title=CVS Caremark, Form 8-K, Current Report, Filing Date Mar 23, 2007 |website=SECDatabase.com |access-date=March 29, 2013 }}{{Cite web |last=Harris |first=Pat |date=March 16, 2007 |title=CVS Finally Wins Caremark for $24 Bln |website=Reuters |url=https://www.reuters.com/article/us-caremark-cvs-idUSWEN549420070316 |access-date=August 31, 2021 }} 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.{{Cite web|title=CVS Caremark changes its name to CVS Health - The Boston Globe|url=https://www.bostonglobe.com/business/2014/09/03/cvs-caremark-changes-its-name-cvs-health/bMCJa2fVQiBJ9rEX7szbXJ/story.html|url-status=live|access-date=August 31, 2021 |website=BostonGlobe.com |archive-url=https://web.archive.org/web/20140904104403/http://www.bostonglobe.com/business/2014/09/03/cvs-caremark-changes-its-name-cvs-health/bMCJa2fVQiBJ9rEX7szbXJ/story.html |archive-date=September 4, 2014 }}

In January 2019, Walmart announced that it would no longer use CVS Caremark as its pharmacy benefit manager.{{Cite web |title=Walmart Drops CVS Pharmacy Coverage in Price Dispute |newspaper=Washington Post |url=https://www.washingtonpost.com/business/economy/walmart-drops-cvs-pharmacy-coverage-in-price-dispute/2019/01/15/36c933e8-18f9-11e9-9ebf-c5fed1b7a081_story.html |access-date=August 31, 2021 |issn=0190-8286 }}

In February 2020, Alan Lotvin was appointed president of CVS Caremark.{{Cite web |title=CVS Health Appoints Alan Lotvin as President of CVS Caremark |url=https://www.rttnews.com/3068624/cvs-health-appoints-alan-lotvin-as-president-of-cvs-caremark.aspx |access-date=June 18, 2020 |website=RTTNews }}

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Category:1993 establishments in Alabama

Category:2007 mergers and acquisitions

Category:American companies established in 1993

Category:American corporate subsidiaries

Category:Companies based in Providence County, Rhode Island

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Caremark

Category:Health care companies based in Rhode Island

Category:Health care companies established in 1993

Category:Pharmacy benefit management companies based in the United States

Category:Woonsocket, Rhode Island