What is up with CVS?
Asked by: Gage Franecki | Last update: September 26, 2025Score: 4.4/5 (15 votes)
What is going on with CVS?
Tim Wentworth took over as CEO about 15 months ago and has already cut the company's dividend, announced plans to shut down 1,200 stores, and is looking at wide range of options, including selling assets.
What is the CVS controversy?
The government alleges that by knowingly filling unlawful prescriptions for controlled substances, CVS violated the CSA and, where CVS sought reimbursement from federal healthcare programs, also violated the FCA. The complaint alleges that CVS's actions helped to fuel the opioid crisis.
Is CVS in trouble financially?
Over the last few years, CVS has struggled with declining profit margins at its retail pharmacies, as well as rising costs of patient care through its insurance unit Aetna, which generates around a third of the company's revenue. So far, CVS has cut its 2024 earnings forecast for three straight quarters.
Why are pharmacists leaving CVS?
Pharmacy workers say poor working conditions and understaffing are putting employees and patients at risk, with increased demands on staffers becoming untenable and preventing them from doing their jobs properly.
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Why is CVS closing all their stores?
The newspaper reported that when it spoke to a CVS spokesperson, they said the effort to pare down has been made “based on [the company's] evaluation of changes in population, consumer buying patterns and future health needs."
Why did CVS crash?
Hynes said the problem appeared to be that CVS "over-diversified" its Medicare Advantage plan selection and over-extended its benefits. UnitedHealth's stock has also had a pretty bad month.
Is CVS going out of business in 2024?
Similar to Rite-Aid and Walgreens, the pharmacy is making a huge shift that will impact customers. Your local CVS may be closing its doors for good. The drugstore chain is in the process of shuttering "roughly 300" locations across the country in 2024, a spokesperson confirmed to Good Housekeeping.
Is CVS Health struggling?
The firm has faced a tumultuous 2024 after replacing its CEO and halting profit guidance after three consecutive quarterly cuts. Media reports have suggested that CVS Health Corporation (NYSE:CVS) is looking to split its operations to help battle high costs.
Who is CVS buying out?
On February 8, 2023, CVS Health announced it entered into a definitive agreement to acquire Oak Street Health in an all-cash transaction for $39 per share, representing an enterprise value of approximately $10.6 billion.
What is the risk of a CVS?
Some risks are: Miscarriage: The miscarriage risk with CVS is less than 1 in 100 or 1%. Infection: As with most medical procedures, there's a small risk of infection. Limb deformity: Rarely, CVS testing can cause a baby to be born with a limb deformity (especially when CVS is done before 10 weeks).
Is CVS changing its name?
It also announced it would change its corporate name to CVS Health to reflect "its broader health care commitment" and a desire to change the future health of Americans, although all retail stores would continue to be called "CVS/pharmacy", unless they did not contain a pharmacy, in which case they are just signed CVS.
Why is CVS laying off people?
CVS Health, a major player in the pharmacy and healthcare sector, announced that it will lay off nearly 3,000 employees in 2024. These layoffs, which represent about 1% of the company's overall workforce, primarily focus on corporate positions and are part of a larger $2 billion cost-saving initiative.
What is the Outlook for CVS?
The 16 analysts with 12-month price forecasts for CVS Health stock have an average target of 69.25, with a low estimate of 58 and a high estimate of 86. The average target predicts an increase of 28.67% from the current stock price of 53.82.
Which is better, Walgreens or CVS?
What's Better: CVS or Walgreens? When comparing CVS vs. Walgreens, customer reviews indicate that Walgreens is the better pharmacy. However, other factors, such as cost and rewards programs, give CVS a competitive edge, putting it slightly ahead of Walgreens in these areas.
Why are CVS closing down?
They are now shutting down because of shifting consumer habits, competition and changes in the pharmacy industry.
Why is CVS in trouble?
The Justice Department has filed a lawsuit against CVS Pharmacy Inc., the country's largest pharmacy chain, for filling unlawful prescriptions in violation of the False Claims Act and seeking reimbursement from federal health care programs.
Did the CEO of CVS get fired?
Then, on Friday, Lynch lost her job in a surprise ouster by CVS's board. As my colleague Shawn Tully wrote for Fortune, her tenure “appeared to start brilliantly, then unraveled fast.” Lynch's strategy was to make CVS a “one-stop shop” for healthcare.
Why are they closing Walgreens?
The thinning of Walgreens locations has been in the works. Walgreens said in October 2024 it planned to close about 1,200 underperforming stores across the U.S. as a strategy to offset declining profits resulting from low drug reimbursement rates and sluggish retail sales.
Why are small pharmacies going out of business?
This has been happening all over the country, a New York Times investigation found. P.B.M.s, which employers and government programs hire to oversee prescription drug benefits, have been systematically underpaying small pharmacies, helping to drive hundreds out of business.
Is CVS considering a breakup?
CVS could wind up as the only pharmacy stock in the U.S. if Walgreens goes private. But the drugstore chain, worth about $65 billion, could also become much smaller in the not-so-distant future. The company's board has been considering a breakup for a few months now.
Why are people protesting at CVS?
CVS workers strike at 7 Southern California stores for better pay and health care. LOS ANGELES (AP) — Workers at seven CVS pharmacies in Southern California have gone on strike for better pay and health care and to protest what they say is bad-faith contract bargaining by the company.
Who is CVS merging with?
Merger announcement
CVS-Aetna announced their proposed merger on Dec. 3, 2017. The CVS-Aetna deal is the biggest health care merger in U.S. history. The AMA immediately began analyzing the merger's likely impact on competition.
Why is CVS down so much?
Owing to higher medical costs and its impact on profitability, CVS stock is down 24% this year, underperforming the broader markets, with the S&P 500 index rising 21%. Even if we look at a slightly longer period, the performance of CVS stock with respect to the index has been quite volatile.