Taking a Wrecking Ball – to CVS?

The wrecking ball has now demolished the Union Avenue Methodist Church that once stood at Union and Cooper, which now will be home to a CVS pharmacy.

Meanwhile, consumer groups are ratcheting up the pressure for someone to take a wrecking ball to the drugstore chain and pharmacy benefits manager itself.

The four-year-old, $27 billion merger that resulted in CVS Caremark is the subject of an investigation by the Federal Trade Commission as well as a probe by the attorneys general of 24 states. Earlier this week, five consumer groups wrote a letter to the FTC chairman blasting the merger as harmful to consumers.

According to this New York Times article, the group accuses the chain of using confidential patient information from Caremark to direct customers to CVS pharmacies.

And in late March, Citigroup analysts suggested the company would be worth more split up, also according to the NYT.

The company’s position is that it is reducing costs and “improving health outcomes.”

Dansette

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