(OPGOV GLOBAL) — CVS Health announced Nov. 4 that it plans to split its corporate structure into two independent companies by 2028, separating its healthcare services from its retail pharmacy operations. The move would mark a significant shift for one of the nation’s largest healthcare companies, raising questions about the future of pharmacy services, prescription drug affordability, and healthcare access to millions of Americans.
The announcement follows a strategic review done by the CVS Health Board of Directors. Company leadership says that the separation would allow for each business to operate with a more focused strategy, greater financial flexibility, and the ability to respond more effectively to the needs of consumers, patients, clients, and shareholders.
Under the proposed structure, one company would focus on healthcare solutions, including health insurance, pharmacy management, specialty pharmacy services, and care delivery. The business would include Aetna, CVS Caremark, CVS Specialty, Oak Street Health, and Signify Health. It would continue using the CVS Health name during the transition.
David Joyner, current chairman and chief executive officer of CVS Health, is expected to lead the healthcare solutions company as chairman and CEO.
The second company, CVS Pharmacy, would include approximately 9,000 retail pharmacies, mail pharmacy operations, MinuteClinic locations and virtual care, and the Health100 technology business services. Prem Shah, current group president of CVS Health, is expected to become CEO.
CVS Health said that the pharmacy company would continue to serve the patients and communities through its 30,000 pharmacists while gaining independence to develop more services and partnerships with health insurers, pharmacy benefit managers and pharmaceutical manufacturers.
The split comes as CVS Health manages a complex portfolio spanning insurance, prescription drug services and retail healthcare. Its third-quarter 2026 filing with the Securities and Exchange Commission provides additional details about the scale and financial performance of its operations, including health benefits, health services, and pharmacy and consumer wellness businesses.
Photo Credit: Fierce Healthcare / https://www.fiercehealthcare.com/ / A CVS Pharmacy retail location, representing the company’s nationwide pharmacy operations that are expected to become part of the independent CVS Pharmacy by 2028.
The company says splitting the businesses would give each a dedicated leadership team, independent capital structure, and greater flexibility to direct investments towards their own priorities. CVS Health also expects both companies to keep investment-grade credit ratings and generate strong cash flow.
The restructuring is taking place against a broader national healthcare affordability challenge that is being felt across the country. According to the Centers for Medicare and Medicaid Services’ National Health Expenditure data, total U.S. healthcare spending reached $5.4 trillion in 2024, representing 18% of the nation’s gross domestic product. Prescription drug spending increased 7.9% that year to $467 billion.
These figures represent the struggles of patients, employers, insurers, and healthcare providers. CVS Health has proposed its separation as a way to better expand on healthcare affordability and access, although the announcement does not give immediate establishment of whether the reconstructing will ultimately reduce costs for consumers.
CVS Health’s announcement comes during a time when healthcare access, affordability, and the future of healthcare innovation remain important issues across the country.
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Photo Credit: Digital Health News / https://www.digitalhealthnews.com/ / The CVS Health logo displayed on a smartphone, highlighting the healthcare company's broader digital presence and proposed corporate restructuring.
Although these issues are separate from the CVS corporate restructuring, they affect the broader environment in which healthcare operates. Changes in insurance coverage, prescription drug coverage distribution, pharmacy services, and pharmaceutical innovation can all influence whether patients can receive and afford timely care.
As the company prepares to divide its operations, the company’s ability to maintain accessible healthcare services and respond to emerging healthcare needs will remain an important consideration for patients, policyholders, and industry observers.
For patients and consumers, the immediate impact is expected to be limited, as CVS Health says its prescriptions, healthcare services, insurance benefits, and other support will continue without interruption. Over time, CVS Pharmacy could gain the flexibility to expand more into retail healthcare services and form partnerships, while the healthcare solutions would retain its insurance, pharmacy benefit management, and care delivery operations.
Whether or not the separation leads to lower costs through both companies, better access and improved care for patients and consumers remains to be seen, with consumers ultimately judging the results through their prescription prices, insurance benefits, and overall healthcare experiences.
CVS Health expects the separation to be complete by 2028 during the first half of the year, with existing shareholders expected to receive shares in both independent companies. The transaction is expected to be tax-free and remains subject to customary conditions, including final board approval, SEC registration requirements, and confirmation of its intended tax treatment.
Until then, CVS Health will continue operating under its current corporate structure while preparing for its planned transition to separation. As the process moves forward, the focus will be whether the two companies will deliver greater flexibility, improved healthcare access and services, and meaningful benefits for the millions of Americans who rely on them.
OpGov.News contacted CVS Health’s corporate communications team, as well as representatives for its healthcare solutions and retail pharmacy businesses, seeking comment on the planned separation. Follow-up inquiries were also sent. As of publication, the company has not responded to our requests for comment.
Thumbnail Photo Credit: CVS Health / https://investors.cvshealth.com/news/news-details/2026/CVS-Health-Announces-Intent-to-Create-Two-Distinct-Leaders-in-Healthcare/default.aspx / CVS Health outlines how separating its business is expected to advance its corporate strategy, provide more operational flexibility, and strengthen healthcare services.
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