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[[Image:CaremarkLogo.png|right|220px]]
[[Image:CaremarkLogo.png|right|220px]]
'''Caremark Rx''' was founded in 1993 in [[Birmingham]] as '''MedPartners Inc.''' by [[HealthSouth]] along with [[Richard Scrushy]], former CEO of HealthSouth, and one time HealthSouth Chief Operating Officer [[Larry House]] as a physician practice management (PPM) company. In March [[2007]] the company merged with industry giant CVS to form the '''CVS Caremark Corporation'''.  
'''MedPartners Inc.''' was a public health care company founded in [[1993]] in [[Birmingham]]. The firm was founded by [[HealthSouth]]'s [[Richard Scrushy]] and [[Larry House]] as a Physician Practice Management (PPM) company. House served as chairman, president and CEO.


==Caremark International History==
The company's primary division was headed by [[Lynn Massingale]], founder of TeamHealth in Knoxville, Tennessee, which was one of MedPartners' first acquisitions. The company grew rapidly over the next few years by acquiring other PPM networks, mostly through stock swaps. Notable acquisitions included Mullikin Medical Enterprises for $414 million, Pacific Physician Services for $343 million, Caremark International of Northbrook, Illinois for $2.5 billion, and InPhyNet Medical Management of Fort Lauderdale, Florida for $450 million. MedPartners briefly reigned as the largest PPM company in the United States.
In [[1978]] [http://en.wikipedia.org/wiki/Baxter_International Baxter Healthcare Corporation] of Deerfield, Illinois launched the First National Hemophilia Home Service.  In [[1983]], Baxter started Hemophilia Patient Home Health Care.  In [[1985]], Baxter began providing prescription benefit management services known as Caremark. The company introduced Mail Service Pharmacy, IGIV Home Care Services, and Growth Hormone Distribution and Services.  Prescription Health Services (PHS) was purchased in [[1991]].  Due to the expansive growth, the above divisions were spun off from Baxter in [[1992]] to become Caremark International. The Caremark Formulary was developed and Clinical Intervention Programs were also introduced that year.


==MedPartners==
The CareMark acquisition brought with it a number of rehabilitative hospitals and a major Prescription Benefit Management (PBM) operation. MedPartners sold the hospitals to HealthSouth. In late [[1997]] MedPartners' attempted to merge with another fast-growing PPM company, PhyCor of Nashville, Tennessee. The failure of that bid resulted in a reported net loss to the company's shareholders of $800 million. House resigned and was replaced by Scrushy on an interim basis. In [[1999]] [[Mac Crawford|Edwin "Mac" Crawford]] took over as chairman, president and CEO. He announced that MedPartners would refocus on its PBM business and sell off its PPM network.
After going public in [[1995]], MedPartners quickly became the largest PPM company through many acquisitions. In [[1996]], Caremark International was acquired by MedPartners with MedPartners ending up with Caremark's PPM division and prescription benefit management (PBM) and disposing of Caremark's rehabilitation hospitals to HealthSouth.


==Refocusing==
MedPartners changed its name to '''Caremark Rx''' in [[2000]]. Scrushy sold his remaining shares and left the board a year later. Caremark Rx moved its corporate headquarters from [[Birmingham]] to Nashville, Tennessee in [[2003]]. It merged with rival AdvancePCS in [[2004]].
In [[1998]], after a failed merger attempt with PhyCor, MedPartners announced that it would suffer a net loss of 800 million dollars. Chairman, President and CEO [[Larry House]] resigned with Richard Scrushy acting as interim Chairman, President and CEO. In 1999 Edwin "Mac" Crawford became Chairman, President and CEO. After taking over, [[Mac Crawford]] announced that MedPartners was exiting its PPM business and refocusing on its PBM business. MedPartners changed its name to Caremark Rx in [[2000]], after it had sold all of its PPM practices. In [[2001]] [[Richard Scrushy]] sold his remaining shares in Caremark and left its board to continue as Chairman and CEO of [[HealthSouth]]. In [[2003]], Caremark announced it was moving its corporate headquarters from [[Birmingham]] to Nashville, Tennessee.  


==Advance PCS Merger==
On [[March 16]], [[2007]] Caremark Rx merged with CVS to form the '''CVS Caremark Corporation''', which is headquartered in Woonsocket, Rhode Island.
In [[2004]] Caremark merged with '''AdvancePCS''', seen as a key move in ensuring the growth and profitability of the company.  By retaining key leaders from the AdvancePCS organization, and adopting many of its key priciples, CaremarkRx was able to bolster its position within the PBM industry. 
 
==CVS Merger==
On [[November 1]], [[2006]], Caremark announced it would be merging with the national pharmacy chain CVS.  The merger was approved by shareholders on [[March 16]], [[2007]].  The company is now known as CVS Caremark Corporation and is headquartered in Woonsocket, Rhode Island.


==External Links==
==External Links==
*[http://www.caremark.com/wps/portal Caremark's] website
* [https://www.caremark.com CVS Caremark] website
*[http://cvscaremarkmerger.com/pressReleases/pr031607.html Caremark Shareholders Approve CVS Merger] Press release


==References==
==References==
*[http://en.wikipedia.org/w/index.php?title=Caremark_Rx&oldid=115795112 Caremark Rx]. (2007, March 17). In Wikipedia, The Free Encyclopedia. Retrieved 15:06, March 19, 2007
* Sharpe, Anita (January 22, 1997) "[https://www.wsj.com/articles/SB853857400337063000 MedPartners to Buy InPhyNet For $450 Million in Stock Deal]" ''The Wall Street Journal''
 
* "[http://en.wikipedia.org/w/index.php?title=Caremark_Rx Caremark Rx]". (March 17, 2007) ''Wikipedia'' - accessed March 19, 2007
{{GFDL}}


[[Category:Health care industry]]
[[Category:Health care industry]]
[[Category:Former public companies]]
[[Category:1993 establishments]]
[[Category:2007 disestablishments]]

Revision as of 17:02, 16 September 2019

CaremarkLogo.png

MedPartners Inc. was a public health care company founded in 1993 in Birmingham. The firm was founded by HealthSouth's Richard Scrushy and Larry House as a Physician Practice Management (PPM) company. House served as chairman, president and CEO.

The company's primary division was headed by Lynn Massingale, founder of TeamHealth in Knoxville, Tennessee, which was one of MedPartners' first acquisitions. The company grew rapidly over the next few years by acquiring other PPM networks, mostly through stock swaps. Notable acquisitions included Mullikin Medical Enterprises for $414 million, Pacific Physician Services for $343 million, Caremark International of Northbrook, Illinois for $2.5 billion, and InPhyNet Medical Management of Fort Lauderdale, Florida for $450 million. MedPartners briefly reigned as the largest PPM company in the United States.

The CareMark acquisition brought with it a number of rehabilitative hospitals and a major Prescription Benefit Management (PBM) operation. MedPartners sold the hospitals to HealthSouth. In late 1997 MedPartners' attempted to merge with another fast-growing PPM company, PhyCor of Nashville, Tennessee. The failure of that bid resulted in a reported net loss to the company's shareholders of $800 million. House resigned and was replaced by Scrushy on an interim basis. In 1999 Edwin "Mac" Crawford took over as chairman, president and CEO. He announced that MedPartners would refocus on its PBM business and sell off its PPM network.

MedPartners changed its name to Caremark Rx in 2000. Scrushy sold his remaining shares and left the board a year later. Caremark Rx moved its corporate headquarters from Birmingham to Nashville, Tennessee in 2003. It merged with rival AdvancePCS in 2004.

On March 16, 2007 Caremark Rx merged with CVS to form the CVS Caremark Corporation, which is headquartered in Woonsocket, Rhode Island.

External Links

References

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