Ever wonder what the C V and S stood for in CVS Pharmacy? I actually heard a comedian using this fact in a bit and decided to do some research. CVS Pharmacy, officially known as CVS Health Corporation, is a prominent American retail pharmacy and healthcare company.
The history of CVS can be traced back to 1963 when Stanley and Sidney Goldstein, along with Ralph Hoagland, opened the first Consumer Value Store (CVS) in Lowell, Massachusetts. The concept of CVS was revolutionary at the time, as it focused on providing customers with both pharmaceutical services and a wide range of retail products under one roof, emphasizing convenience.
The name “CVS” originally stood for “Consumer Value Store,” reflecting the founders’ commitment to offering quality products at reasonable prices. Over the years, CVS has undergone various acquisitions and name changes to evolve into the comprehensive healthcare company it is today. One significant milestone in CVS’s history occurred in 1990 when it merged with Melville Corporation, a retail holding company.
Former CEO Tom Ryan has said he considers “CVS” to stand for “Convenience, Value, and Service”.
This merger led to the expansion of CVS’s presence and the inclusion of more diverse product lines. In 1996, CVS Health Corporation further solidified its position in the industry with the acquisition of the pharmacy benefit management (PBM) company, Caremark. This move allowed CVS to offer integrated pharmacy and PBM services, creating a more holistic approach to healthcare management.
The company continued to grow and adapt to the changing healthcare landscape. In 2004, CVS Pharmacy executed a significant acquisition by purchasing the Eckerd drugstore chain and its related pharmacy benefits management (PBM) business from J.C. Penney Corporation.
The acquisition, valued at $2.15 billion, added approximately 1,260 stores to CVS’s retail network, expanding its footprint and solidifying its position as one of the largest pharmacy chains in the United States. This strategic move allowed CVS to enhance its presence in key markets, particularly in the Southern and Midwestern regions.
In 2006, CVS made a landmark acquisition by purchasing the pharmacy services provider MinuteClinic. This acquisition marked CVS’s entry into the retail healthcare services sector, as MinuteClinic offered walk-in medical clinics within CVS stores, providing basic healthcare services.
On October 14, 2010, CVS was ordered to pay $77.6 million in fines and returned profits stemming from a lawsuit alleging improper control in the sale of pseudoephedrine, a drug that can be used to make methamphetamine.
In 2014, CVS Health Corporation made a groundbreaking decision to stop selling tobacco products in its stores, aligning with its commitment to promoting health and well-being. The company subsequently rebranded itself as CVS Health to reflect its broader role in healthcare. CVS’s dedication to innovation and adaptability is further exemplified by its acquisition of Aetna,
a leading health insurance company, in 2018. This strategic move aimed to integrate pharmacy services, retail, and insurance, creating a more comprehensive and patient-focused healthcare experience.
In 2011 the U.S. Department of Justice charged that CVS pharmacies in Sanford, Florida, ordered enough painkillers to supply a population eight times its size. Sanford has a population of 53,000 but the supply would support 400,000. According to the Drug Enforcement Administration (DEA), in 2010 a single CVS pharmacy in Sanford ordered 1.8 million oxycodone pills, an average of 137,994 pills a month. Other pharmacy customers in Florida averaged 5,364 oxycodone pills a month. DEA investigators serving a warrant to a CVS pharmacy in Sanford on October 18, 2011, noted that “approximately every third car that came through the drive-thru lane had prescriptions for oxycodone or hydrocodone”. According to the DEA, a pharmacist at that location stated to investigators that “her customers often requested certain brands of oxycodone using “street slang”, an indicator that the drugs were being diverted and not used for legitimate pain management. In response, CVS, in a statement issued February 17, 2012, in response to opioid trafficking questions from USA Today, said the company was committed to working with the DEA and had taken “significant actions to ensure appropriate dispensing of painkillers in Florida”.
Further Reading
Sources
- CVS Health Corporation. (2022). About CVS Health. https://www.cvshealth.com/about
- Harvard Business Review. (2014). CVS Quits for Good: No More Tobacco at the Corner Store. https://hbr.org/2014/09/cvs-quits-for-good-no-more-tobacco-at-the-corner-store
- CVS Health Corporation. (2004). CVS Corporation Completes Acquisition of Eckerd Drugstore Chain and Related Pharmacy Benefits Management (PBM) Business. https://cvshealth.com/newsroom/press-releases/cvs-corporation-completes-acquisition-eckerd-drugstore-chain-and-related
- CVS Pharmacy https://en.wikipedia.org/wiki/CVS_Pharmacy#Acquisitions_and_growth
