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CVS Caremark

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This article is about the healthcare management company. For the company formerly called CVS Caremark, see CVS Health.
CVS Caremark
Formerly
  • MedPartners, Inc. (1993-2000)
  • Caremark Rx (2000-2014)
Company typeSubsidiary
IndustryHealthcare
FoundedBirmingham, Alabama, United States (1993 (1993))
Headquarters
Woonsocket, Rhode Island
,
United States
Area served
Nationwide
Key people
Alan Lotvin (President)
ProductsPrescription Benefit Management
RevenueIncrease US$36.7 billion (2006)
Number of employees
13,628 (2005)
ParentCVS Health

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

Company history

Caremark was founded in 1993 in Birmingham, Alabama as MedPartners, Inc. by HealthSouth Corporation and several members of the HealthSouth executive team as a physician practice management (PPM) company. New Enterprise Associates was also an early investor. 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.

Caremark International 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 pharmaceutical products manufacturing (PPM) division and prescription benefit management (PBM) division.[1]

In October 1997, PhyCor, announced they would be acquiring MedPartners for $8 billion in stock and assumed debt.[2] 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.[3] MedPartners then announced that they would suffer a net loss of $841 million for the 4th quarter of 1997.[4] 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.[5][6] On March 18, 1998, Edwin "Mac" Crawford became the new president and CEO of MedPartners.[7] After taking over, Crawford announced that MedPartners was exiting its PPM business and refocusing on its PBM business.[7] In 2000, MedPartners changed its name to Caremark Rx.[8]

In 2003, it merged with AdvancePCS.[9] That same year, Caremark moved its headquarters from Birmingham, Alabama, to Nashville, Tennessee.[10]

In March 2007, Caremark merged with CVS Corporation to create CVS Caremark, later re-branded as CVS Health.[11]

In February 2020, Alan Lotvin was appointed president of CVS Caremark.[12]

Logo until 2016

Notes

  1. ^ Hutchcraft, Chuck (15 May 1996). "CAREMARK SOLD FOR $2.5 BILLION". chicagotribune.com. Retrieved 2020-06-18.
  2. ^ Olmos, David (1997-10-30). "PhyCor Plans to Acquire MedPartners". Los Angeles Times. Retrieved 2020-06-18.
  3. ^ MedPartners, Phycor Cancel Merger Agreement - Memphis Business Journal. Bizjournals.com (1998-01-08). Retrieved on 2013-09-05.
  4. ^ Mac Crawford: Definition from. Answers.com. Retrieved on 2013-09-05.
  5. ^ Milazzo, Don (26 September 1999). "Caremark Rx slashes 200 jobs in huge corporate turnaround". Birmingham Business Journal. Retrieved 2020-04-08.
  6. ^ "Head rolls at MedPartners - Jan. 19, 1998". money.cnn.com. Retrieved 2020-04-08.
  7. ^ a b Freudenheim, Milt (1998-11-12). "Medpartners Plans to Divest Itself of the Business of Physician Practice Management". The New York Times. ISSN 0362-4331. Retrieved 2020-04-08.
  8. ^ Park, Jennifer (2 January 2000). "MedPartners emerges from woes as Caremark". Birmingham Business Journal. Retrieved 2020-04-08.
  9. ^ Sidel, Robin (2003-09-03). "Caremark to Buy Rival AdvancePCS In $5.6 Billion Pact". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-06-18.
  10. ^ Martinez, Barbara (2006-05-10). "For Caremark's Chief Executive, Outsize Rewards". Wall Street Journal. ISSN 0099-9660. Retrieved 2020-04-09.
  11. ^ "CVS Caremark, Form 8-K, Current Report, Filing Date Mar 23, 2007" (PDF). secdatabase.com. Retrieved Mar 29, 2013.
  12. ^ "CVS Health Appoints Alan Lotvin As President Of CVS Caremark". RTTNews. Retrieved 2020-06-18.
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