CVS Corporation to Acquire MinuteClinic, Largest Provider of Retail-Based Health Clinics in the US
WOONSOCKET, R.I., July 13 /PRNewswire-FirstCall/ -- CVS Corporation (NYSE: CVS) announced today that it has entered into a definitive agreement to acquire Minneapolis-based MinuteClinic, the pioneer and largest provider of retail-based health clinics in the U.S. MinuteClinic will operate as a wholly-owned subsidiary of CVS Corporation. There are currently 83 MinuteClinics in 10 states, 66 of which are within CVS/pharmacy locations. Completion of the transaction is expected this summer. The financial terms of the agreement were not disclosed.
MinuteClinic locations, which are staffed by certified nurse practitioners and physician assistants, offer treatment for common family illnesses, such as strep throat, ear infections, poison ivy and pink eye. They also provide some common vaccinations. These conveniently-located health clinics are intended to be a supplement, but not a replacement, for a patient's ongoing relationship with a primary care provider. In fact, MinuteClinic maintains a record of primary care practices that are accepting new patients and provides lists to patients who do not have a medical home.
"We are very pleased to be joining the CVS family. MinuteClinic began working with CVS more than 18 months ago and it was clear to us from the beginning that CVS really understands what the MinuteClinic model is all about. They have been a great partner working with us to open MinuteClinics in markets nationwide," said MinuteClinic Chief Executive Officer Michael Howe.
"Our new relationship with CVS will allow us to accelerate the growth and refinement of the MinuteClinic concept and to expand and maintain our existing market leadership position. CVS recognizes that MinuteClinic can build on our strong collaborative relationships with the physician community while continuing to innovate and operate independently in a variety of settings. At the same time, the transaction will allow both parties to make contributions to develop a breadth of offerings to improve the quality and access to healthcare for those we serve," said Glen D. Nelson, MD, Chairman of MinuteClinic.
"The MinuteClinic team has proven they can work collaboratively with physicians and deliver quality care in a convenient, timely and cost-effective manner. We have been impressed with the high level of patient satisfaction they have achieved over the course of seeing nearly half a million patients since their inception," said Thomas M. Ryan, Chairman, President, and Chief Executive Officer of CVS Corporation. "Our decision to acquire MinuteClinic was driven by our belief that this is clearly the right concept for consumers, payers and providers. Our new relationship with MinuteClinic will help us deliver this valued healthcare service to our customers."
MinuteClinic plans to continue operating clinics in CVS/pharmacy and other retail locations (including existing Bartell Drug, Cub Foods, and QFC locations), and at new retail hosts as well as corporate and government offices. MinuteClinic's headquarters will remain in Minneapolis and the existing management team will continue in place.
MinuteClinic operates according to guidelines set forth in principles for store-based clinics recently released by the American Medical Association and published by the American Academy of Family Physicians, adhering to a well-defined, limited scope of clinical practice for store-based health care centers that stress continuity and quality of care. MinuteClinic also has a National Clinical Quality Advisory Council, comprised of nationally recognized health care leaders, that contributes clinical guidance and quality improvement ideas and evaluates the company's clinical performance.
CVS was advised by Evercore Partners and Lehman Brothers in this transaction.
About CVS Corporation
CVS is America's largest retail pharmacy, operating more than 6,100 retail and specialty pharmacy stores in 44 states and the District of Columbia. With more than 40 years of dynamic growth in the retail pharmacy industry, CVS is committed to being the easiest pharmacy retailer for customers to use. CVS has created innovative approaches to serve the healthcare needs of all customers through its CVS/pharmacy stores; its online pharmacy, CVS.com; and its pharmacy benefit management, mail order and specialty pharmacy subsidiary, PharmaCare. General information about CVS is available through the Investor Relations portion of the Company's website, at http://investor.cvs.com, as well as through the pressroom portion of the Company's website, at http://www.cvs.com/pressroom.
About MinuteClinic
MinuteClinic was founded in May 2000. The Minneapolis-based company has provided nearly 500,000 patient visits with 97 percent of customers rating their experience as excellent. It has produced substantial savings of health care expenditures and also reduced the time spent by patients seeking treatment for conditions it addresses. For more information, visit http://www.minuteclinic.com.
