CVS to split healthcare empire into two companies

Summarised from 5 outlets · Updated 4 Nov, 12:44 · Archive

CVS Health plans to separate its retail pharmacies from its insurance and pharmacy-benefit operations by mid-2028.

CVS Health announced Wednesday that it plans to split into two separate public companies by the first half of 2028. The company will divide its retail pharmacy operations, which run about 9,000 stores, from its insurance and pharmacy-benefit management business.

One company will retain the CVS Health name, be publicly traded, and be led by current CEO David Joyner. The other will be called CVS Pharmacy and be led by Prem Shah, currently group president of CVS Health. Existing shareholders will own shares in both companies after the split.

The split marks a significant reversal of CVS's strategy over the past two decades to build an integrated healthcare conglomerate. The company acquired health insurer Aetna for roughly $78 billion in 2018 and merged it with its pharmacy benefit manager, Caremark.

The decision follows growing political and regulatory scrutiny of pharmacy benefit managers and their role in the US drug supply chain. Healthcare companies combining insurance, drug-benefit management and pharmacy operations have faced increased pressure.

CVS reported record revenue of $402.1 billion in 2025, up 7.8 per cent from the prior year. Under Joyner, who took over in October 2024, the company has pursued $2 billion in cost cuts, store closures and efforts to rein in Medicare Advantage costs. Shares have risen roughly 70 per cent since his arrival, bringing the company's market value to about $117 billion.

How it is being reported

• CVS to split up drugstore, insurance businessesCVS plans to separate its pharmacy business from its health insurance and pharmacy benefit manager Caremark, creating two distinct entities.UPI · 4 Nov, 15:21
• CVS Health to split pharmacy chain from health insuranceCVS Pharmacy will be separate from CVS Health, housing major insurer Aetna and benefits manager Caremark CVS Health, the largest US healthcare conglomerate valued at $117bn, has announced its plans split off its pharmacy chain from its health insurance and benefits businesses, ending an era in which healthcare companies grew into massive conglomerates. In their announcement on Wednesday, CVS Health said they will split off its 9,000 pharmacies, in-store clinics and mail order prescription business into a business named CVS Pharmacy. Continue reading...Guardian Business · 4 Nov, 15:20
• CVS to split off drugstore business in major breakup of healthcare giantThe move would reverse the company's $78 billion acquisition of Aetna and dismantle the vertically integrated healthcare conglomerate it created in 2018.CNBC · 4 Nov, 12:35
• CVS breaking up its healthcare empire — splitting pharmacies from insurance businessA separation would mark a significant reversal of CVS' strategy of building an integrated healthcare business through acquisitions, including its roughly $78 billion purchase of health insurer Aetna in 2018.New York Post · 4 Nov, 00:12
• CVS Health moves to dismantle $117bn healthcare empirePotential spin-off of drugstore business comes as political pressure mounts on pharmacy benefit managers and health insurersFinancial Times · 3 Nov, 22:33

In this story: CVS Health · Aetna · Caremark · David Joyner · Prem Shah · United States

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log