Key Stats
CVS Health stands as one of the largest integrated healthcare companies in the United States. The organization combines retail pharmacy operations with pharmacy benefit management services and health insurance through its Aetna division.
Founded in 1963 by Stanley Goldstein, Sidney Goldstein, and Ralph Hoagland, the company started as a single Consumer Value Store in Lowell, Massachusetts. Today, CVS Health ranks among the top healthcare providers in the country.
The company’s transformation from a small health and beauty retailer into a comprehensive healthcare services provider spans six decades. CVS Health operates through three main segments: pharmacy services, retail pharmacy operations, and healthcare benefits.
CVS Health History
CVS Health Co-founders
Stanley Goldstein graduated from Wharton School of Business in 1955 and served as the first chairman and CEO of CVS. He led the company’s growth from a single store to over 4,000 locations with $15 billion in sales by his retirement in 1998.
Sidney Goldstein, Stanley’s brother, served as executive vice president of CVS and was instrumental in the company’s early development. He retired from CVS in 1987 after helping establish the company as a regional powerhouse.
Ralph Hoagland, a former Procter & Gamble salesman, partnered with the Goldstein brothers to launch CVS. He brought valuable sales and marketing expertise that helped shape the company’s customer-first philosophy.
CVS Health Competitors
CVS Health faces competition across its business segments from several major healthcare companies.
| Competitor | Primary Business | Market Position |
|---|---|---|
| UnitedHealth Group | Health insurance, PBM | Largest healthcare company |
| Walgreens Boots Alliance | Retail pharmacy | Second largest pharmacy chain |
| Cigna | Health insurance, PBM | Major health services provider |
| Elevance Health | Health insurance | Large managed care organization |
| Humana | Health insurance | Medicare Advantage leader |
| Rite Aid | Retail pharmacy | Regional pharmacy chain |
| Walmart | Retail pharmacy | Discount pharmacy services |
| Kroger | Retail pharmacy | Grocery-based pharmacy |
| Amazon Pharmacy | Online pharmacy | Digital pharmacy disruptor |
| Centene | Health insurance | Medicaid managed care |
CVS Health Market Cap
CVS Health’s market capitalization reflects investor confidence in the company’s integrated healthcare strategy.
CVS Health Revenue
The company has demonstrated consistent revenue growth through strategic acquisitions and organic expansion.
CVS Health Acquisitions
CVS Health has pursued an aggressive acquisition strategy to build its integrated healthcare platform. The company’s most significant transaction came in 2018 with the $70 billion acquisition of Aetna, a major health insurance provider. This deal transformed CVS from primarily a retail pharmacy operator into a comprehensive healthcare company.
The Aetna acquisition brought 22 million medical members into the CVS Health ecosystem. The merger aimed to improve healthcare delivery by connecting insurance coverage with pharmacy services and retail clinics. Integration of Aetna’s medical data with CVS’s pharmacy information created opportunities for better patient outcomes.
In 2007, CVS completed its merger with Caremark Rx, creating CVS Caremark. This $21 billion transaction combined CVS’s retail pharmacy network with Caremark’s pharmacy benefit management services. The deal positioned CVS as both a pharmacy operator and a PBM, managing prescription drug benefits for millions of Americans.
CVS acquired MinuteClinic in 2006, marking its entry into walk-in healthcare services. MinuteClinic operates over 1,100 locations providing basic healthcare services like vaccinations, health screenings, and treatment for minor illnesses. This acquisition supported CVS’s vision of expanding beyond traditional pharmacy services.
In 2023, CVS completed two major acquisitions focused on value-based care. The company purchased Signify Health for $8 billion, gaining access to a network of 10,000 clinicians providing in-home health assessments. CVS also acquired Oak Street Health for $10.6 billion, adding 169 primary care centers focused on Medicare patients.
Earlier acquisitions included the 1997 purchase of Revco drug stores, which added 2,500 locations and established CVS in new markets. The company bought 500 Peoples Drug stores in 1990, entering mid-Atlantic markets. CVS acquired Longs Drug Stores in 2008, adding 541 stores in California, Hawaii, and Nevada.
These strategic acquisitions reflect CVS Health’s evolution from a regional drugstore chain into an integrated healthcare services company. Each transaction expanded the company’s capabilities in pharmacy services, health insurance, or clinical care delivery. The acquisitions positioned CVS to compete with other large healthcare organizations like UnitedHealth Group.
FAQs
When was CVS Health founded?
CVS Health was founded in 1963 by Stanley Goldstein, Sidney Goldstein, and Ralph Hoagland in Lowell, Massachusetts as Consumer Value Store.
How many locations does CVS Health operate?
CVS Health operates over 9,000 retail pharmacy locations across the United States and Puerto Rico, plus 1,100 MinuteClinic walk-in health centers.
What companies does CVS Health own?
CVS Health owns Aetna health insurance, CVS Caremark pharmacy benefit manager, MinuteClinic, Oak Street Health primary care centers, and Signify Health home healthcare services.
Who are CVS Health’s main competitors?
CVS Health competes with Walgreens Boots Alliance and Rite Aid in retail pharmacy, UnitedHealth Group and Cigna in health insurance and PBM services.
What is CVS Health’s annual revenue?
CVS Health generated $372.8 billion in revenue for fiscal year 2024, making it one of the largest healthcare companies in the United States.