CVS Health
| File:CVS Health logo.svg Logo of CVS Health Corporation | |
| Company type | Public |
|---|---|
| Industry | Healthcare |
| Founded | January 1, 1963 in Lowell, Massachusetts, United States |
| Founder | Stanley Goldstein, Sidney Goldstein, Ralph Hoagland |
| Headquarters | Woonsocket, Rhode Island , United States |
Area served | United States |
Key people | David Joyner (President and CEO) |
| Products | Retail pharmacy, pharmacy benefits management, health insurance |
Number of employees | 300,000 (2024) |
| Website | www |
CVS Health Corporation stands as a prominent American healthcare enterprise, encompassing CVS Pharmacy, a nationwide retail pharmacy chain; CVS Caremark, a pharmacy benefits management service; and Aetna, a provider of health insurance, among various other subsidiaries. It holds the position of the second largest healthcare company globally, trailing only UnitedHealth Group, and was ranked 64th on the 2023 Forbes Global 2000 list. The company was established in Lowell, Massachusetts by siblings Stanley and Sidney Goldstein along with partner Ralph Hoagland, originally under the name Consumer Value Stores.
With a network exceeding 9,100 outlets throughout the United States, CVS Health generated $372.8 billion in revenue in 2024 and employs around 300,000 individuals. Its principal divisions include CVS Pharmacy, MinuteClinic, CVS Caremark, Longs Drugs, Navarro Discount Pharmacies, Omnicare, Aetna, and Oak Street Health. The corporate headquarters are located in Woonsocket, Rhode Island, with David Joyner fulfilling the roles of president and CEO.
The company’s operational strategy combines retail pharmacy services, pharmacy benefit management, and health insurance offerings to enhance its market presence and fuel expansion. Despite its considerable scale and leadership position, CVS Health has encountered several controversies related to Medicare fraud allegations, breaches of privacy, medication errors, misleading business practices, pharmaceutical kickbacks, and political corruption investigations—leading to significant legal settlements and challenges to its reputation.
1960s
The inaugural Consumer Value Store (CVS), focusing on health and beauty merchandise, was established in 1963 in Lowell, Massachusetts by brothers Stanley and Sidney Goldstein alongside Ralph Hoagland. By 1964, CVS had grown to 17 locations specializing in beauty products. The company introduced its first pharmacy departments in 1967 at stores in Warwick, Rhode Island and Cumberland, Rhode Island. In 1969, Melville Corporation acquired CVS.
1970s
By 1970, CVS operated a total of 100 stores throughout New England and the Northeastern United States. The company expanded into the Midwest region in 1972 by purchasing 84 Clinton Drug and Discount Stores based in Indiana. Further growth occurred in 1977 with the acquisition of 36 Mack Drug outlets located in New Jersey.
1980s
In 1983, CVS initiated home health care services specifically for patients with hemophilia. The company broadened its presence in the Boston market through acquiring Heartland Drug in 1988.
1990s
In 1990, CVS entered mid-Atlantic markets such as Washington, D.C., Pennsylvania, Maryland, and Virginia by acquiring 500 Peoples Drug stores. The launch of PharmaCare—a pharmacy benefit management (PBM) company—occurred in 1994. CVS became an independent publicly traded entity on the New York Stock Exchange under the ticker symbol "CVS" in 1996, with Stanley Goldstein appointed as its inaugural chairman. The following year saw CVS acquire over 2,500 Revco drugstores, extending its footprint into additional Midwestern, Southeastern, and Eastern states.
In 1998, CVS expanded into Michigan by adding 207 stores from Arbor Drugs. In 1999, it acquired Soma.com—the first online pharmacy—and rebranded it as CVS.com, pioneering a fully integrated online and physical pharmacy retailer model.
2000s
In the year 2000, CVS expanded its specialty pharmacy footprint by acquiring Stadtlander pharmacy from Bergen Brunswig Corporation, positioning CVS ProCare as the largest specialty pharmacy nationwide at that time. The following year, CVS introduced the ExtraCare loyalty program, rapidly attracting 30 million participants. By 2004, CVS had significantly increased its market share in Texas, Florida, and other southern states through the acquisition of 1,268 Eckerd drug stores and Eckerd Health Services from JCPenney.
The company continued its expansion in 2006 by purchasing 700 standalone drugstores from Albertsons supermarket chain, which included Osco Drug and Sav-On Drugs outlets. That same year, CVS also acquired MinuteClinic, based in Minneapolis. The merger between CVS Corporation and Caremark Rx in 2007 resulted in the formation of CVS Caremark, a combined pharmacy services organization headquartered in Woonsocket, Rhode Island. Tom Ryan retained his role as CEO while Edwin Crawford from Caremark took on the chairman position. In 2008, CVS Caremark further extended its reach by acquiring 541 Longs Drugs stores located in California, Hawaii, and Nevada.
2010s
Larry Merlo succeeded Tom Ryan as president and CEO of CVS Caremark in 2011. By September 2014, CVS had discontinued tobacco product sales across all its approximately 7,700 outlets ahead of schedule and rebranded itself as CVS Health to highlight its broadened healthcare mission. That year also saw CVS Caremark’s acquisition of Coram, a provider specializing in infusion and enteral nutrition services, alongside the purchase of 33 Navarro Discount Pharmacy stores in Miami—the largest Hispanic-owned drugstore chain in the United States.
In 2015, CVS Health acquired Omnicare, which offers pharmacy services to long-term care facilities, and integrated over 1,600 pharmacies and retail clinics within Target stores through a store-within-a-store concept. Two years later, in 2017, CVS launched kiosks stocked with personal care items at high-traffic venues such as airports and college campuses.
December 2017 marked a pivotal moment when CVS agreed to acquire health insurer Aetna for about $69 billion in cash and stock. This strategic move aimed to combine health insurance with healthcare services for Aetna’s 22 million members. Larry Merlo was appointed to lead the merged entity pending regulatory approval.
Towards the end of 2018, Merlo revealed plans to renovate CVS locations to prioritize healthcare services over traditional retail following the Aetna acquisition. The early 2019 rollout of the HealthHUB concept embodied this vision by allocating at least 20% of store space to healthcare offerings such as yoga sessions and expanded MinuteClinic services. By mid-2019, CVS intended to convert approximately 1,500 stores into HealthHUB formats by the close of 2021; however, these conversions were halted in March 2020 due to the COVID-19 pandemic.
2020s
In February 2020, CVS streamlined its board of directors from sixteen members down to thirteen. On November 18, 2021, the company revealed plans to shutter roughly 900 stores across the U.S. over a three-year period—about ten percent of its nationwide locations—citing changes in consumer habits, demographic shifts, and evolving healthcare demands. Five days later, on November 23, a federal jury determined that CVS along with Walgreens and Walmart had played a significant role in contributing to the opioid epidemic.
On December 2, 2021, CVS entered into a strategic alliance with Microsoft aimed at advancing personalized healthcare and digital health innovations. In September 2022, CVS agreed to acquire Signify Health—an at-home healthcare provider—for around $8 billion as part of its announced plan to enter primary care services by year-end. On February 8, 2023, CVS disclosed a definitive agreement to purchase Oak Street Health in an all-cash transaction valued at approximately $10.6 billion; this merger was finalized in May 2023.
Finances
| Year | Revenue in mil. US$ |
Net income in mil. US$ |
Total Assets in mil. US$ |
Employees | Stores |
|---|---|---|---|---|---|
| 2005 | 37,007 | 1,225 | 15,247 | 148,000 | 5,474 |
| 2006 | 43,821 | 1,369 | 20,574 | 176,000 | 6,205 |
| 2007 | 76,330 | 2,637 | 54,722 | 200,000 | 6,301 |
| 2008 | 87,472 | 3,212 | 60,960 | 215,000 | 6,981 |
| 2009 | 98,144 | 3,690 | 61,918 | 211,000 | 7,095 |
| 2010 | 95,766 | 3,424 | 62,457 | 201,000 | 7,248 |
| 2011 | 107,080 | 3,462 | 64,852 | 202,000 | 7,388 |
| 2012 | 123,120 | 3,864 | 65,474 | 203,000 | 7,508 |
| 2013 | 126,761 | 4,592 | 70,550 | 208,000 | 7,702 |
| 2014 | 139,367 | 4,644 | 73,202 | 217,800 | 7,866 |
| 2015 | 153,290 | 5,237 | 92,437 | 243,000 | 9,681 |
| 2016 | 177,526 | 5,317 | 94,462 | 250,000 | 9,750 |
| Year | Revenue in mil. US$ |
Net income in mil. US$ |
Total Assets in mil. US$ |
Employees | Stores |
|---|---|---|---|---|---|
| 184,765 | 6,622 | 95,131 | 246,000 | 9,846 | |
| 194,579 | |||||
| 196,456 | 295,000 | 9,967 | |||
| 256,776 | 6,634 | 222,449 | 290,000 | 9,941 | |
| 268,706 | 7,179 | 230,715 | 300,000 | 9,962 | |
| 292,111 | 7,910 | 232,999 | 300,000 | 9,900 | |
| 322,467 | 4,165 | 228,275 | 300,000 | 9,674 |
Aetna
Aetna Inc. stands as a prominent U.S.-based managed healthcare provider that offers a range of traditional and consumer-focused insurance products and services. Its offerings encompass medical coverage as well as pharmaceutical benefits,dental care,bahavioral health,long-term care,and disability insurance primarily delivered through employer-sponsored plans and Medicare programs.
CVS Pharmacy
As one of the largest retail pharmacy chains in the United States,CVS Pharmacy operates nearly 9,600 outlets nationwide under various banners such as CVS Pharmacy and Longs Drugs. It dispenses over one-fifth of all U.S. prescriptions and reaches 85% of Americans living within a 10-mile radius of a store. The ExtraCare rewards program includes upwards of 70 million participants—making it the nation's most extensive retail loyalty initiative—bolstering customer engagement and competitive positioning.
MinuteClinic
MinuteClinic manages more than 1,100 walk-in healthcare clinics located within CVS Pharmacy stores across 33 states plus the District of Columbia. It is the country’s largest retail clinic network with over half the U.S. population residing within 10 miles of one of its sites,resulting in improved healthcare access and expanding CVS Health’s service footprint.
CVS Caremark
CVS Caremark provides extensive prescription benefit management solutions including mail order and specialty pharmacy services,in addition to infusion treatments and plan formulation support. Serving a broad clientele that includes employers,payers,labor unions,federal entities,and individuals nationwide,it oversees prescription plans for over 75 million members via five mail order pharmacies alongside a network of 68,000 retail pharmacies—comprising 41 thousand chain stores and 27 thousand independents—thereby reinforcing its leadership in pharmacy benefit management.
CVS Media Exchange
CVS Media Exchange (CMX) represents CVS Health’s retail media platform, introduced in 2020 to deliver targeted advertising through both digital and physical store environments. Utilizing data derived from the ExtraCare loyalty program alongside CVS’s widespread retail locations, CMX offers integrated marketing strategies encompassing programmatic display ads, connected television, social networking channels, and in-store advertising. It provides advertisers with comprehensive closed-loop analytics to monitor campaign effectiveness from initial exposure to final purchase. CMX collaborates with key partners such as The Trade Desk, LiveRamp, and Pinterest to improve audience segmentation while ensuring compliance with data privacy standards.
CVS Specialty
CVS Specialty serves as the company’s division dedicated to specialty pharmacy services, focusing on managing complex treatments for chronic and genetic disorders. With a network of 24 retail specialty outlets and 11 specialty mail-order pharmacies, it stands as the leading specialty pharmacy provider in the United States, highlighting CVS Health’s expertise in managing high-cost medications.
Longs Drugs
Longs Drugs is a pharmacy retail chain operating approximately 40 stores across Hawaii. Acquired by CVS in 2008, the original west coast chain—comprising over 500 locations—was rebranded as CVS outside of Hawaii. This acquisition allowed CVS to broaden its market reach and strengthen its foothold in key regional areas.
Navarro Discount Pharmacies operates as a pharmacy chain offering photo services and pharmacy benefit management primarily within Miami-Dade and Broward Counties, with 33 locations. Purchased by CVS Health in September 2014, Navarro maintains its brand identity while functioning under the broader CVS Health corporate umbrella.
Accordant
Accordant specializes in managing care for rare diseases and chronic conditions. Its main clientele includes health insurers, employers, and third-party administrators (TPAs). Accordant operates as a fully owned subsidiary of CVS Health Corporation.
Coram
Coram ranks among the largest infusion service providers in the United States, delivering clinical monitoring and patient counseling to roughly 140,000 individuals annually through more than 85 sites and the nation’s most extensive home infusion network. Acquired by CVS Health in August 2015, Coram operates as a wholly owned subsidiary supporting CVS’s expanded healthcare offerings.
Omnicare
Omnicare supplies pharmacy services tailored for long-term care settings such as skilled nursing and assisted living facilities throughout North America. Since its acquisition by CVS Health in August 2015, Omnicare has functioned as a wholly owned subsidiary, bolstering CVS’s institutional pharmacy service capabilities.
HealthHUB
HealthHUBs are dedicated areas within select CVS Pharmacy locations that offer an expanded range of healthcare products and services beyond conventional retail offerings. These centers feature solutions for Sleep Apnea, Durable Medical Equipment, home health technologies, and compression therapy products. Staffed by Care Concierges knowledgeable about HealthHUB services, these sites also provide enhanced MinuteClinic care supported by Medical Assistants, Registered Nurses, and Licensed Practical/Vocational Nurses who assist Nurse Practitioners and Physician Assistants.
Private label and store brands
CVS Health offers a variety of private label products within its retail pharmacy outlets. These include grocery selections under the Gold Emblem™ and Gold Emblem Abound™ names; household essentials branded as Total Home; preservative-free vitamins and supplements marketed through Radiance PLATINUM; and a range of beauty items available via Beauty 360, Nuance Salma Hayek, Makeup Academy, Skin+Pharmacy, Blade, and Essence of Beauty. These exclusive brands play a vital role in diversifying CVS's merchandise lineup and strengthening its market position in the retail pharmacy industry.
Elimination of tobacco products from stores
On February 5, 2014, CVS declared it would discontinue all tobacco product sales by October 1, 2014. CEO Larry J. Merlo explained this move reflected CVS’s strategic transition toward health care services, underscoring the company’s dedication to promoting wellness and setting its business approach apart from conventional retailers.
Medicare and health fraud issues
In the late 1980s through the early 1990s, Caremark RX—one of CVS’s predecessors—was involved in substantial allegations concerning health care and Medicare fraud, culminating in settlements exceeding $250 million. These legal difficulties affected the company’s financial results but ultimately led to enhanced compliance protocols within its organizational framework.
Elensys data sharing controversy
In 1998, CVS faced criticism for providing prescription drug purchasing information to marketing agency Elensys to facilitate targeted direct mail advertising. While CVS asserted that no medical history data was disclosed and framed the initiative as consumer education, privacy concerns sparked public disapproval. In response, CVS ended its contract with Elensys and brought these marketing operations in-house to exercise greater control over data handling and safeguard customer privacy—demonstrating proactive management of reputational risks.
Trio Drugs litigation
On August 22, 2001, CVS Corporation was sued over allegations related to acquiring confidential records from Trio Drugs.
Prescription errors in Boston
Between 2002 and 2005, CVS stores in the Boston area reported multiple prescription inaccuracies. An investigation confirmed 62 instances of quality control failures, leading the Massachusetts Board of Pharmacy in 2006 to appoint the Institute for Safe Medication Practices (ISMP) to oversee all state pharmacies for a two-year period.
Financial restatements
Following an SEC review concerning acquisition-related expenses, CVS restated its financial statements for 1997 and 1998 on November 15, 1999. Additionally, in February 2005, the company revised its fourth-quarter earnings downward by $40.5 million due to adjustments in accounting for leased real estate.
Pharmaceutical kickback settlements
In 2005, Caremark Rx resolved federal lawsuits with a $137.5 million settlement linked to improper conduct by AdvancePCS—a company acquired in 2003. The allegations involved kickbacks from drug manufacturers intended to encourage the promotion of specific products under government programs such as Medicare and the Federal Employees Health Benefit Program. Both Caremark and AdvancePCS denied any misconduct.
Since these events, CVS Caremark has updated its formulary decision-making process by incorporating factors like manufacturer rebates, payments for formulary inclusion, average wholesale price (AWP), drug availability, and volume discounts when establishing brand-name drug co-payment amounts.
Misleading commercial conduct
In February 2008, CVS resolved a $38.5 million civil lawsuit involving multiple states concerning deceptive practices linked to its pharmacy benefit manager, Caremark. The legal action, spearheaded by 28 attorneys general including Illinois' Lisa Madigan and Maryland's Douglas Ganslar, accused Caremark of misleading healthcare providers by encouraging switches to particular brand-name medications that often resulted in minimal or no cost savings for patients or insurers, while increasing Caremark’s earnings.
Connecticut Attorney General Richard Blumenthal highlighted that these medication changes occasionally raised expenses despite assurances of savings. Pennsylvania Attorney General Tom Corbett alleged that Caremark withheld discounts and rebates that should have been passed on to employers and patients. The complaint further asserted that Caremark did not fully inform physicians about the financial consequences of these switches, concealing that the primary beneficiaries were Caremark’s profits.
The settlement prohibited CVS from recommending drug substitutions when such changes would increase patient costs, when the original drug’s patent was set to expire within six months, or if a similar substitution had occurred within the prior two years. It also empowered patients to refuse pharmacy-initiated medication switches. This agreement sought to enhance transparency and safeguard patient interests while addressing concerns regarding Caremark’s operational and financial conduct.
Rhode Island legislative corruption investigation
In 2008, former CVS officials John R. "Jack" Kramer and Carlos Ortiz faced 20 charges including mail fraud, bribery, and conspiracy as part of Operation Dollar Bill, which examined corruption within the Rhode Island General Assembly. They employed ex-state senator John Celona as a media consultant at an annual fee of $12,000. Celona, who was serving a sentence related to corruption charges involving CVS and other parties, served as a key witness for the prosecution despite initially denying that CVS sought to purchase influence. On May 31, 2008, Kramer and Ortiz were found not guilty on all charges; a juror remarked on the absence of evidence beyond reasonable doubt despite lingering suspicions.
FTC allegations of data security breaches
On February 18, 2009, CVS Caremark reached a settlement with the Federal Trade Commission over allegations of insufficient safeguards protecting customers’ and employees’ financial and medical information, violating federal statutes. Separately, CVS agreed to pay $2.25 million to settle accusations from the Department of Health and Human Services regarding breaches of HIPAA regulations.
Scrutiny of corporate operations
On May 4, 2010, CVS Caremark revealed it was under investigation by authorities from 24 states, the District of Columbia, and Los Angeles County concerning business practices following its merger with Caremark. The company also disclosed receiving a subpoena from the Department of Health and Human Services’ Office of Inspector General related to incentives offered to consumers for transferring prescriptions to CVS locations, including gift cards and other promotional rewards.
DEA probe into oxycodone distribution
The U.S. Justice Department reported that in 2011, CVS pharmacies in Sanford, Florida ordered quantities of painkillers sufficient for a population eight times larger than the town’s actual size. Sanford has approximately 53,000 residents; however, the volume ordered could supply around 400,000 people. In 2010 alone, one Sanford CVS location requested 1.8 million Oxycodone tablets—an average of 137,994 pills per month—whereas other pharmacies across Florida averaged just 5,364 pills monthly. DEA agents observed that nearly every third vehicle at the drive-thru presented prescriptions for oxycodone or hydrocodone. A pharmacist reported frequent requests from customers using street slang for specific oxycodone brands, signaling potential diversion for illicit use. CVS affirmed its commitment to collaborating with the DEA and indicated it has implemented substantial measures to ensure responsible dispensing of pain medications in Florida.
FTC allegations of misleading pricing
On January 12, 2012, CVS Caremark agreed to a $5 million settlement addressing Federal Trade Commission accusations concerning the inaccurate representation of prices for select Medicare Part D prescription medications—such as those used to treat breast cancer symptoms and epilepsy—at CVS and Walgreens locations.
In September 2016, Massachusetts Attorney General Maura Healey announced a $795,000 settlement mandating CVS to verify prescriptions for addictive opioids and controlled substances against a state database prior to dispensing. This settlement resolved claims that CVS had not provided pharmacists with access to the Massachusetts Prescription Monitoring Program (PMP). Later, in July 2020, the Kentucky attorney general filed a lawsuit against CVS, alleging that its business practices contributed to the opioid crisis.
In November 2021, a federal jury in Cleveland held CVS Health, Walgreens, and Walmart pharmacies responsible for their role in exacerbating the opioid epidemic within two Ohio counties—marking the initial trial where pharmacy chains defended against such allegations during the crisis.
By August 2022, CVS, along with Walgreens and Walmart, was ordered to pay $650 million in damages following an opioid lawsuit initiated by Lake and Trumbull Counties in Ohio. Prior to trial, two other pharmacy chains, Rite Aid and Giant Eagle, reached settlements. Collectively, these counties sought damages totaling $3.3 billion.
CFI consumer fraud litigation
In July 2018, the Center for Inquiry initiated legal action against CVS for consumer fraud related to its marketing and sale of homeopathic remedies. The suit contended that these products lack efficacy and may potentially worsen health conditions or cause harm by substituting scientifically validated treatments.
Controversy over abortion medication
In January 2023, after updates to FDA regulations, CVS revealed plans to distribute mifepristone, a primary medication used in abortion procedures. Upon receiving certification, CVS began providing this drug in jurisdictions where it is legally permitted, which triggered substantial political debate and protests at various pharmacy sites.
Pharmacy error leading to unintended abortion
In October 2023, CVS mistakenly dispensed misoprostol, an abortion drug, to Tamika Thomas who was undergoing IVF treatment expecting fertility-enhancing medications. This error caused the loss of both embryos. The pharmacists involved were fined and placed on probation for one year; meanwhile, CVS Pharmacy faced a maximum fine of $10,000. This incident highlighted concerns regarding CVS’s operational protocols and risk management within its pharmacy operations.
Community engagement and charitable efforts
- Since 1978, CVS Samaritan Vans have offered complimentary roadside assistance services to drivers and communities across several cities.
- The CVS Caremark Charity Classic, hosted at the Rhode Island Country Club, supports nonprofit organizations throughout New England. Since its inception in 1999, it has generated more than $8 million for charitable causes.
- In 2024, CVS Health pledged close to $35 million in equity investments aimed at developing affordable housing in Hawai'i. This commitment includes $17.5 million allocated for 200 housing units at Kaiāulu o Kūku'ia (Lahaina, Maui) and an additional $17.3 million invested alongside The Kobayashi Group, The Ahe Group, and CREA, LLC for 169 units at Parkway Village (Kapolei, Oahu).
See also
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