CVS Health to separate pharmacy and insurance units amid regulatory pressure

STAT reports that CVS Health will divide its pharmacy and insurance operations, reversing a strategy of combining the two. The decision follows ongoing attention from federal and state regulators concerned about the effects of vertical integration in healthcare.

For senior leaders in health insurance and pharma, this signals a potential change in how large firms structure their businesses. Regulatory scrutiny of integrated models may prompt other organisations to reconsider similar deals or review their compliance strategies.