CVS basically has a growing vertical monopoly. It is a partial owner of Cardinal Health, one of the largest wholesalers of drugs for pharmacies (basically how pharmacies purchase the drugs they stock). They just purchased Aetna, which manages the reimbursement many insurance providers pay pharmacies for the drugs they dispense to patients. In other words, they own the guys who sell the drugs to the pharmacies, they own the guys who pay the pharmacies on behalf of a patient’s insurance, and they own (some of) the pharmacies. What an incredible way to minimize your own losses and make it impossible for others to survive!
Date_Posted: 2018-01-26 18:08:21
CVS basically has a growing vertical monopoly. It is a partial owner of Cardinal Health, one of the largest wholesalers of drugs for pharmacies (basically how pharmacies purchase the drugs they stock). They just purchased Aetna, which manages the reimbursement many insurance providers pay pharmacies for the drugs they dispense to patients. In other words, they own the guys who sell the drugs to the pharmacies, they own the guys who pay the pharmacies on behalf of a patient’s insurance, and they own (some of) the pharmacies. What an incredible way to minimize your own losses and make it impossible for others to survive!