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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.  It is currently headquartered in Nashville, Tennessee.  [[Mac Crawford]] is the current CEO. It is the largest prescription management and pharmaceutical services business in the United States and is a member of the Fortune 100. 
'''MedPartners Inc.''' was a public health care company founded in [[1993]] in [[Birmingham]]. The firm was founded with an initial investment of $1 million by [[HealthSouth]]'s [[Richard Scrushy]] and [[Larry House]], who served as chairman, president and CEO.


==MedPartners and Caremark International History==
The company's primary Physician Practice Management (PPM) 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 with more than 11,000 affiliated physicians and $3 billion in net revenues. In [[1996]] MedPartners appeared on the "Fortune 500" list, and also sponsored [[Mike Harmon]]'s car in the NASCAR Busch Series.
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.  Caremark International was founded as a unit of Baxter International.  It expanded to the distribution of drugs for other conditions, including human growth hormone and multiple sclerosis. The company was spun off from Baxter International in [[1992]].  


==Refocusing==
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 [[1997]] House began negotiating to merge MedPartners into a smaller, but fast-growing PPM network, PhyCor of Nashville, Tennessee. That merger, announced on [[October 29]], fell apart after PhyCor uncovered major weaknesses in MedPartners' business practices. The company lost $841 million in value in the fourth quarter [[1997]], while holding $1.8 billion in debt.
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]].


==Move to Nashville==
House resigned his positions in January [[1998]] and was replaced by Scrushy on an interim basis. In March turnaround specialist [[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 240-practice PPM network. The move was successful, as the company reported $2.4 billion in revenues at the end of the year.
In [[2003]], Caremark announced it was moving its corporate headquarters from [[Birmingham]] to Nashville, Tennessee. Caremark currently has approximately 16,000 employees.


==Advance PCS Merger==
MedPartners changed its name to '''Caremark Rx''' in [[2000]] and moved its offices into the [[Offices at 3000 RiverChase|Galleria Tower]]. 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]], a year when it reported $9 billion in revenues. It merged with rival AdvancePCS in [[2004]] and was soon filling 600 million prescriptions per year with over $23 billion in revenues.
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 [[March 16]], [[2007]] Caremark Rx merged with CVS to form the '''CVS Caremark Corporation''', which is headquartered in Woonsocket, Rhode Island.
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]].


==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''
* Sharpe, Anita (March 19, 1998) "MedPartners Loss Exceeds Its Forecast." ''The Wall Street Journal''
* Elkind, Peter (June 21, 1999) "[http://money.cnn.com/magazines/fortune/fortune_archive/1999/06/21/261719/ Vulgarians at the Gate How ego, greed, and envy turned MedPartners from a hot stock into a Wall Street fiasco]" ''Fortune''
* Russell, Keith (February 22, 2004) "Caremark Triumphs in Fight for Profitability," ''The Tennessean''
* "[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:Former public companies]]
[[Category:Heath care industry]]
[[Category:1993 establishments]]
[[Category:2007 disestablishments]]

Latest revision as of 17:30, 16 September 2019

CaremarkLogo.png

MedPartners Inc. was a public health care company founded in 1993 in Birmingham. The firm was founded with an initial investment of $1 million by HealthSouth's Richard Scrushy and Larry House, who served as chairman, president and CEO.

The company's primary Physician Practice Management (PPM) 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 with more than 11,000 affiliated physicians and $3 billion in net revenues. In 1996 MedPartners appeared on the "Fortune 500" list, and also sponsored Mike Harmon's car in the NASCAR Busch Series.

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 1997 House began negotiating to merge MedPartners into a smaller, but fast-growing PPM network, PhyCor of Nashville, Tennessee. That merger, announced on October 29, fell apart after PhyCor uncovered major weaknesses in MedPartners' business practices. The company lost $841 million in value in the fourth quarter 1997, while holding $1.8 billion in debt.

House resigned his positions in January 1998 and was replaced by Scrushy on an interim basis. In March turnaround specialist Edwin "Mac" Crawford took over as chairman, president and CEO. He announced that MedPartners would refocus on its PBM business and sell off its 240-practice PPM network. The move was successful, as the company reported $2.4 billion in revenues at the end of the year.

MedPartners changed its name to Caremark Rx in 2000 and moved its offices into the Galleria Tower. 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, a year when it reported $9 billion in revenues. It merged with rival AdvancePCS in 2004 and was soon filling 600 million prescriptions per year with over $23 billion in revenues.

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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