CVS Plans Major Split of Its Drugstore Empire
CVS plans to break up its massive healthcare empire and separate its retail drugstores from its insurance business.
Big changes are coming to your corner pharmacy. CVS wants to split its giant business into two separate companies. The move breaks apart a massive healthcare empire built over the last decade.
Back in 2018, CVS bought health insurer Aetna for 78 billion dollars. The leaders wanted one giant firm for both insurance plans and local shops. Now, the company plans to undo that deal. The retail stores will stand on their own again.
Rising costs hit the company hard over the past few years. Running insurance plans alongside thousands of physical shops proved difficult. Splitting the pieces helps each company focus on its main business.
Everyday shoppers should see normal service at the counter for now. Over time, focused firms often cut waste. That can bring better service and clearer prices for families.
Source: CNBC
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