CVS Health has announced plans to separate its business into two independent, publicly traded companies, marking an important change in its healthcare strategy. The proposed move will divide its healthcare benefits and services operations from its retail pharmacy and community healthcare business. Announced on November 4, 2026, the plan is expected to be completed in the first half of 2028, subject to required approvals. The company aims to give both businesses greater independence, clearer priorities and more flexibility to develop their services.
Why Is CVS Splitting Into Two Companies?
The planned separation is designed to help each business focus on its main operations and growth opportunities. CVS Health believes that operating as two independent companies will make decision-making easier and allow each organisation to invest according to its specific business needs.
The first company will focus on healthcare solutions, bringing together Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health. The second company, which will be called CVS Pharmacy, will manage approximately 9,000 retail pharmacy locations, mail-order pharmacy services, MinuteClinic and Health100 technology services.
According to the company, the new structure will support innovation, improve operational efficiency and help make healthcare more accessible and affordable.
How Will the Two CVS Companies Operate?
The healthcare solutions company will continue operating under the CVS Health name in the interim. It will combine health insurance, pharmacy benefit management, specialty pharmacy and care delivery services.
David Joyner, the current chairman and CEO of CVS Health, is expected to lead this business as chairman and CEO after the separation.
The retail pharmacy business will operate as CVS Pharmacy. It will concentrate on serving customers through its pharmacy locations, community healthcare services, mail-order operations and digital health offerings. Prem Shah, currently Group President of CVS Health, is expected to become its CEO.
Both companies will operate independently and have their own leadership teams and financial structures.
Does CVS Own Aetna and CVS Caremark?
Yes. CVS Health owns Aetna, which it acquired in 2018, and CVS Caremark, its pharmacy benefit management business.
Under the proposed separation, both Aetna and CVS Caremark will remain together within the healthcare solutions company. This will allow the business to maintain connections between health insurance, prescription benefits and healthcare services.
CVS Pharmacy will operate separately with its retail pharmacy and community healthcare operations.
What Does the CVS Separation Mean for CVS Stock?
The announcement is also attracting attention from investors following CVS stock. Once the separation is completed, existing CVS Health shareholders are expected to own shares in both independent companies.
CVS Health expects each business to have an independent capital structure, strong cash flow and investment-grade credit ratings. The company also intends the transaction to be tax-free for CVS Health and its shareholders for US federal income tax purposes.
However, the separation is not yet complete, and investors will need to follow further company announcements as the process develops.
When Will CVS Complete the Business Separation?
CVS Health expects to complete the separation in the first half of 2028. The process remains subject to customary conditions, including final board approval, regulatory requirements and confirmation of the intended tax treatment.
Until then, both businesses will continue operating under the existing CVS Health organisation. The company has also stated that customers, patients and healthcare partners should continue receiving their existing services without interruption.
A New Direction for CVS Health’s Healthcare Business
The planned CVS splitting companies strategy represents a major change in how the healthcare group will organise its operations. By creating separate healthcare solutions and retail pharmacy businesses, CVS Health aims to give each company a more focused direction. The proposed separation will remain an important development for the US healthcare industry, customers and investors as the company works towards its 2028 target.
Frequently Asked Questions
1. Why is CVS splitting into two companies?
CVS Health plans to separate its healthcare benefits and services business from its retail pharmacy operations to give each company greater focus, flexibility and independence.
2. Does CVS own Aetna?
Yes. CVS Health acquired Aetna in 2018. Aetna will remain part of the healthcare solutions company after the planned separation.
3. What will happen to CVS Caremark?
CVS Caremark will remain within the healthcare solutions company alongside Aetna, CVS Specialty, Oak Street Health and Signify Health.
4. When will CVS split into two companies?
The company expects the separation to be completed in the first half of 2028, subject to required approvals and other conditions.
5. Will CVS shareholders receive shares in both companies?
Yes. Under the announced plan, existing CVS Health shareholders are expected to own shares in both independent companies after the separation.
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