CVS Health Plans to Split Up Its Massive Business

CVS Health wants to change how it runs its business. The healthcare giant plans to divide its massive company into smaller parts.

The firm spent two years fixing its main operations. Analysts say the retail drugstores and the insurance business now have enough strength to stand on their own. Managing both units under one roof created high costs and slowed growth.

Splitting the company helps each side focus on its main goals. The corner drugstores can focus on filling prescriptions. Meanwhile, the health insurance group can focus on patient care.

Investors often cheer these moves because smaller firms can move faster. Everyday shoppers can expect pharmacy visits to stay the same. Customers might see better service as store teams gain more freedom to run their shops.

Source: CNBC