Description
CVS Caremark is the prescription benefit management subsidiary of CVS Health, headquartered in Woonsocket, Rhode Island.
History
Caremark was founded as a physician and pharmacy benefits management company in 1993. It was founded in Birmingham, Alabama as MedPartners, Inc. by former HealthSouth Corporation chief executive Richard Scrushy. New Enterprise Associates was an initial investor in the company. MedPartners went public in February of 1995. In August 1995, MedPartners announced the acquisition of Mullikin Medical Enterprises, a physician management company. In December 1995, MedPartners acquired Pacific Physicians Services in Redlands, California.
On May 15, 1996, Caremark International, a provider of manager health services, announced it would be acquired by MedPartners. Caremark International was founded as a unit of Baxter International and was spun off from Baxter in 1992 as a publicly traded company.
In October 1997, PhyCor, announced they would acquire MedPartners for $8 billion in stock and assumed debt. However, the merger agreement was terminated in January 1998, with the companies citing significant operational and strategic differences as the reason for the termination of the merger.
In January 1998, Chairman, President and CEO Larry House left the company and Richard Scrushy took over as chairman and acting CEO of the company. In 1998, Edwin "Mac" Crawford became the new president and CEO of MedPartners. After taking over, Crawford announced that MedPartners was exiting its PPM business and refocusing on its PBM business.
