CVS Health plans to separate into two independent, publicly traded companies following a strategic review by its board of directors. The move would create one business dedicated to healthcare solutions and another focused on retail pharmacy operations.
The healthcare solutions company will, at least during the transition period, retain the CVS Health name. It will include the Aetna insurance business, pharmacy benefit manager CVS Caremark, specialty pharmacy provider CVS Specialty, and primary and home-based care platforms Oak Street Health and Signify Health. According to the company, these brands will form an integrated platform aimed at delivering coordinated healthcare services.
The retail company will be branded CVS Pharmacy. That business currently operates approximately 9,000 CVS retail pharmacies, along with mail pharmacy services, MinuteClinic walk-in clinics and the Health100 technology services business. As a standalone organization, CVS Pharmacy is expected to concentrate on consumer-facing pharmacy, clinical services, and related technology capabilities.
Leadership for the two future companies has already been designated. Upon completion of the separation, David Joyner, currently chairman and CEO of CVS Health, will serve as chairman and CEO of the healthcare solutions company. Prem Shah, now group president of CVS Health, is slated to become CEO of CVS Pharmacy. The company indicated that additional executive appointments and board members for each business will be announced at a later date.
Joyner framed the decision as a continuation of CVS Health’s efforts to adapt to evolving healthcare needs, emphasizing aims such as improved affordability, greater access to care and a more streamlined consumer experience. He noted that over the past two years CVS Health has built out its leadership team, worked to strengthen its financial position, and pursued operational improvements across the enterprise, with the goal of supporting long-term shareholder value.
The separation is expected to be completed in the first half of 2028, subject to customary conditions and approvals. CVS Health has engaged Goldman Sachs as its lead financial advisor and strategic advisor on the transaction, with Consello also serving as a financial and strategic advisor. Law firm Wachtell, Lipton, Rosen & Katz is providing legal counsel to the company in connection with the planned split.
The announcement comes as healthcare delivery continues to expand beyond traditional medical settings and into retail and community-based environments. Industry events and conferences are highlighting how health systems, investors and operators are responding to these shifts, including the growing role of pharmacies, walk-in clinics and technology-enabled care platforms.
