CVS Health to split into two independent public companies

CVS Health has announced plans to separate into two independent, publicly traded companies, marking a significant shift in its corporate structure. The move follows a strategic review aimed at addressing changing market demands within the healthcare sector. The transaction is expected to be completed in the first half of 2028 and is intended to be tax-free for the company and its shareholders.

The separation will create a healthcare solutions provider—encompassing Aetna, CVS Caremark, and specialty care services—to be led by current CVS Health CEO David Joyner. The second entity, to be named CVS Pharmacy, will operate the company’s retail pharmacy chain, MinuteClinic locations, and Health100 technology business, led by current group president Prem Shah.

The company stated that both resulting entities are expected to maintain investment-grade ratings and robust cash flows. This structure is intended to provide both companies with greater operational agility and the ability to tailor capital allocation strategies to their specific market needs, while maintaining current service levels for patients.