The last few years that I worked as a pharmacist, I worked as a temp pharmacist and one of the locations that I worked at, was one of Omnicare’s LTC pharmacies. When I had my own independent pharmacy, we serviced nursing homes. I left working as a pharmacist before CVS bought Omnicare. I worked a lot of closing shifts and we used both a local Walgreens and CVS for picking use meds that we had a order for that the pharmacy was out of stock. I don’t remember the exact time frame but at some point… The Omnicare was told by CVS that they did not want to be a backup pharmacy for Omnicare.
Them selling Omnicare off, does not surprise me. When you are providing services to nursing homes… you do not have not control over the cost of deliveries or the number of deliveries that a particular facilities requires. From what I have seen/heard about how CVS functions… they are very focused on controlling costs.
This quote from the article: it is “determined that its LTC business was no longer a strategic asset.. that sounds like “corporate speak” for the Omnicare division was either losing money or they believe that they can take the money generated from selling the division and make more money putting it to work in some other business. I am really surprised that they kept this business this long.
CVS Health to sell Omnicare
https://drugstorenews.com/cvs-health-sell-omnicare?oly_enc_id=1561H7059134A4V
CVS Health announced on Wednesday that it plans to sell Omnicare, its long-term care pharmacy business. The Woonsocket, R.I. company reported a $2.5 billion loss related to Omnicare in the third quarter.
Omnicare serves senior living communities, skilled nursing facilities and Programs of All-Inclusive Care for the Elderly.
“We continue to evaluate our portfolio strategically and are making decisions around assets that don’t fit into our portfolio strategically. Omnicare is a good example of that,” Karen Lynch, president and CEO, said Wednesday morning during the Q&A with analysts on the company’s third-quarter earnings call.
In a Securities and Exchange Commission filing on Wednesday CVS said that it is “determined that its LTC business was no longer a strategic asset, and during the third quarter of 2022 committed to a plan to sell.”
What’s next for CVS?
During the Q&A with investors, Lynch also said, “We will continue to evaluate our options on primary care. And as I said, we believe that we need to do M&A, and we continue to evaluate those options in the marketplace.”
CVS acquired Omnicare in 2015 in an approximately $12.3 billion deal.
Filed under: General Problems
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