CVS Health, a healthcare giant, started as a single store in 1963 and has since grown exponentially. With over 9,000 retail stores and 1,100 in-store clinics, the company focuses on providing healthcare services. Following its acquisition of Aetna, CVS Health shifted its emphasis from retail to healthcare. Led by CEO Karen Lynch, the company reported significant revenue and completed notable acquisitions. It faces legal challenges and ongoing investigations but continues to expand its influence in the healthcare industry.
Here are 50 key facts about CVS Health and its subsidiaries:
1. CVS Health originated as a single store selling health and beauty products in Lowell, Mass., in 1963.
2. By 1988, the pharmacy chain had expanded to 750 stores.
3. In 2006, CVS Health acquired MinuteClinic, an in-store health clinic.
4. The chain further expanded by acquiring Caremark, a pharmaceutical benefits manager, in 2007.
5. In 2015, CVS Health acquired Target’s pharmacies for $1.9 billion.
6. The largest healthcare merger in U.S. history occurred in 2018 when CVS Health acquired Aetna for $70 billion.
7. CVS Health currently operates over 9,000 retail stores and more than 1,100 in-store clinics.
8. Following the acquisition of Aetna, CVS Health shifted its focus from retail to healthcare, dedicating more in-store space to provider services.
9. The company announced plans to close 900 stores over the next three years starting in 2021.
10. CVS Health CEO Karen Lynch stated in October 2022 that the company aims to oversee the “entire spectrum of someone’s healthcare journey.”
Fast facts about CVS Health:
11. CVS Health is headquartered in Woonsocket, R.I.
12. The company employs over 300,000 individuals, according to its 2022 year-end report.
13. In the Fortune 500 ranking of 2023, CVS Health held the 6th position, following UnitedHealth Group in fifth place.
14. The company slipped from its fourth-place ranking on the Fortune 500 in 2022.
15. CVS Health reported $322.46 billion in revenue in 2022.
16. The health services segment, including the pharmaceutical benefit manager, accounted for around 50 percent ($85 billion) of the company’s revenue in Q1 2023.
17. Health benefits (including Aetna) and pharmacy and consumer wellness each contributed around 30 percent to the company’s first-quarter revenue.
18. The company’s profit for the first quarter of 2023 amounted to $2.1 billion.
Leadership at CVS Health:
19. Karen Lynch has served as the CEO of CVS Health since 2021, having previously held the position of president at Aetna.
20. In 2022, Karen Lynch received a total compensation of $21.3 million.
21. Karen Lynch, the highest-ranking female CEO on the Fortune 500, was named one of Time magazine’s most influential people in 2022.
22. Shawn Guertin has been CVS Health’s CFO since 2021, having previously served as Aetna’s CFO for eight years.
23. In 2022, Shawn Guertin’s total compensation amounted to $14.6 million.
24. The median employee-to-CEO pay ratio at CVS Health in 2022 was 380-to-1.
25. CVS employees had a median salary of $56,129.
26. Roger Farah, the former co-chief executive officer and executive director of retailer Tory Burch, chairs the board of CVS Health. He also serves on the boards of Tiffany and Co. and Progressive.
Aetna:
27. Aetna was established as the Aetna Life Insurance company in 1819, with headquarters in Hartford, Conn.
28. The company established its HMO subsidiary in 1975.
29. Aetna acquired Prudential Health in 1998 for $1 billion, creating the largest managed-care company at that time with 22.4 million members.
30. As of Q1 2023, Aetna had 25.5 million medical insurance members.
31. The payer had nearly 18 million commercial members in the first quarter of 2023.
32. Aetna is the third-largest Medicare Advantage provider, following UnitedHealthcare and Humana, with 3.4 million MA members at the end of Q1 2021.
33. Aetna had 2.8 million Medicaid-managed care members.
34. Daniel Finke has served as the president of Aetna since February 2021, having joined the company in 2014 and previously served as COO of EmblemHealth.
35. Mr. Finke is expected to step down in September due to health reasons, with Brian Kane, former CFO of Humana, assuming the role effective Sept. 1.
Recent acquisitions by CVS Health:
36. In May, CVS Health completed a $10.6 billion acquisition of primary care company Oak Street Health, which operates over 160 clinics across 21 states.
37. In March, CVS Health finalized an $8 billion acquisition of Signify Health, a company that provides analytics and technology to payers. Aetna stands to benefit from Signify Health’s extensive value-based care network.
38. This acquisition will expedite CVS Health’s value-based care strategy, as stated by Karen Lynch in March. Signify CEO Kyle Armbrester will continue leading the company.
39. CVS Health announced a slowdown in mergers and acquisitions after purchasing two multibillion-dollar assets in early 2023.
40. In October 2022, CVS Health sold the benefits administration platform Bswift to tech investment firm Francisco Partners.
41. In May 2022, Millenium Trust Co. acquired health savings account company PayFlex Holdings from CVS Health for an undisclosed amount.
Recent headlines:
42. Cigna is attempting to prevent former executive Amy Bricker from becoming CVS’ executive vice president and chief product officer-consumer, citing a violation of a non-compete agreement. A federal judge has issued an injunction prohibiting Ms. Bricker from working for CVS while the lawsuit is ongoing.
43. CVS Health is phasing out its clinical trials unit, launched two years ago, to prioritize its core business in the long term. The company plans to complete the exit from clinical trials by December 31, 2024.
44. CVS Health anticipates a decrease of up to $1 billion in Aetna’s operating income next year due to a significant drop in the number of Medicare Advantage members in four-star plans compared to the previous year.
45. In March, Aetna secured a contract to provide Medicare Advantage plans to 250,000 retirees in New York City. The plan is currently facing legal challenges.
46. In March, the House Committee on Oversight and Accountability launched an investigation into the business practices of three pharmacy benefit managers (PBMs), including CVS Caremark.
47. In January, CVS Health invested $100 million in Carbon Health, a hybrid healthcare company. Some existing CVS locations will incorporate Carbon Health’s operating model.
48. North Carolina ended its 40-year relationship with Blue Cross Blue Shield, choosing Aetna to administer employee health benefits due to cost savings and increased price transparency.
49. CVS Health completed the acquisition of primary care company Oak Street Health for $10.6 billion in May.
50. In March, CVS Health finalized an $8 billion acquisition of Signify Health, a provider of analytics and technology to payers. Aetna aims to leverage Signify Health’s extensive value-based care network.
