Why is CVS declining?
Asked by: Clara Spencer | Last update: September 22, 2025Score: 4.2/5 (63 votes)
Why is CVS struggling?
A company spokesman for CVS stated, “Our industry faces continued disruption, regulatory pressures, and evolving consumer needs and expectations.” Among these disruptions are prescription delivery services, such as Amazon Pharmacy (including PillPack, which Amazon acquired in 2018) and venture capital-backed Capsule.
Why is CVS stock dropping so much?
For CVS, it's been a tough three years to navigate, as rising medical expenses, the COVID pandemic, and staffing issues have all weighed on its operations. The company hasn't been able to find much stability in its operations, and even now has struggled with forecasting.
Why is CVS closing so many stores?
Within the last year, the company has also cut about 5,000 jobs, per The Wall Street Journal. 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."
What is the controversy with CVS?
The complaint alleges that CVS' actions helped to fuel the opioid crisis and that, in some particularly tragic instances, patients died after overdosing on opioids shortly after filling unlawful prescriptions at CVS.
Why CVS Sucks Now...And Is Getting Worse
Why are so many pharmacists leaving CVS?
Pharmacists say CVS is understaffing and overworking them
Many of the problems mirror issues found at CVS a store in Virginia Beach, Va., in 2021. Overwork and other problems were linked to dangerous errors in dispensing drugs — and violations that resulted in a $470,000 fine.
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.
Why are CVS and Walgreens in trouble?
The slow simmer of mistakes and misfortunes has come to a boil for the biggest U.S. drugstore chains. They've accumulated too many stores at a time of changing shopper habits. They're saddled with numerous government fines and a particularly ailing relationship with health insurers.
Why is CVS pulling out of Target?
The closures are part of CVS's efforts to pare down its retail footprint “based on our evaluation of changes in population, consumer buying patterns and future health needs,” she said. CVS has operated pharmacies inside Target stores since 2015, when it bought the business from the retailer for around $1.9 billion.
Will CVS ever recover?
The odds of CVS recovering are high now that costs are increasingly being cut and the forward earnings multiple under 10x is sufficiently low to attract value investors.
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.
How is CVS doing 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.
Is CVS laying off people?
CVS Health is laying off nearly 165 employees as a part of a mass layoff at its facility in Hartford, Connecticut. The facility, located on Farmington Avenue, announced that they plan to layoff 164 employees in February 2025.
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.
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.
What is the best pharmacy to use?
Good Neighbor Pharmacy ranks highest among brick-and-mortar chain drug store pharmacies for an eighth consecutive year, with a score of 775. Good Neighbor received top scores in all study dimensions, including "level of trust with pharmacy." Health Mart (729) ranks second and Rite Aid Pharmacy ranks third (650).
What is the CVS controversy?
The US Department of Justice announced a lawsuit on Wednesday accusing pharmacy chain CVS of filling illegal opioid prescriptions and billing federal health insurance programs, contributing to a nationwide epidemic of opioid addiction and overdose.
Why are pharmacists leaving CVS?
Not having enough staff and employer-ordered quotas were the biggest factors cited. The association "is aware of and supports pharmacists and pharmacy personnel that are protesting unsafe working conditions that put their patients' health at risk," the state professional group said Monday in a statement on its website.
Is CVS in danger of closing?
“We are at a point where the current pharmacy model is not sustainable,” Wentworth said in June. CVS, the largest US chain, closed 244 stores between 2018 and 2020. In 2021, it announced plans to close an additional 900 stores. Earlier this month, CVS said it planned to cut about 2,900 jobs corporate jobs.
What is CVS new name?
To help demonstrate the connection and convenience the company uniquely delivers, CVS Healthspire will be the new branded name for our Health Services segment, which includes CVS Caremark®, Cordavis™, Oak Street Health®, Signify Health® and MinuteClinic®.
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.
Why is CVS falling?
Detailed Analysis of CVS' Q3 Earnings Release
Health Services revenues were down 5.9% year over year to $44.13 billion in the reported quarter. This downside was due to the previously announced loss of a large client and continued pharmacy client price improvements.
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 owns CVS now?
CVS Health Corporation is an American for-profit healthcare company that owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; and Aetna, a health insurance provider, among many other brands. The company is the world's second largest healthcare company, behind UnitedHealth Group.