CVS Health plans to separate into two independent, publicly traded companies following a strategic review by its board of directors, creating one entity focused on healthcare solutions and another on retail pharmacies. The move is intended to sharpen the strategic focus of each business line while maintaining continuity of leadership during the transition.
The healthcare solutions company will, for the time being, retain the CVS Health name. This business will bring together several of the company’s existing healthcare brands, including Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health. By aligning these platforms, CVS Health aims to concentrate its healthcare services, benefits and value-based care offerings under a single corporate umbrella.
The second company will operate as CVS Pharmacy and will encompass the retail-facing operations. This entity will include approximately 9,000 CVS pharmacies as well as the company’s mail pharmacy services, MinuteClinic walk-in clinics and the Health100 technology services business. The retail company will be structured around consumer access to medications, basic clinical services and related technology-enabled offerings.
Leadership plans for the two entities have been outlined. 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, will assume the role of CEO of CVS Pharmacy. Additional leadership appointments and board composition for both companies are expected to be announced as the process advances.
Joyner described the separation as an extension of CVS Health’s history of adapting to shifts in the healthcare landscape. He noted that over the past two years the company has focused on building a leadership team, strengthening its financial position, improving operations across the enterprise and delivering total shareholder return. From that base, the decision to separate the businesses is framed as a long-term effort to enhance consumer engagement, affordability and care coordination.
The separation is expected to be finalized in the first half of 2028, subject to customary closing conditions and approvals. CVS Health has engaged a group of advisors to support the process. Goldman Sachs is serving as lead financial advisor and strategic advisor, with Consello also acting as a financial and strategic advisor to the company. Wachtell, Lipton, Rosen & Katz is providing legal counsel.
The announcement comes amid broader changes in how and where healthcare is delivered, including continued expansion of services outside traditional medical settings. In that context, Connect Healthcare Real Estate is hosting an event November 17–18 at the SLS Hotel in Beverly Hills, featuring speakers such as Sing Sing Lee of Cedars-Sinai and Maggie Vasquez of Infusion for Health, focused on evolving care environments and the stakeholders shaping them.
