Published on November 6, 2009 at 11:15 PM
"CVS Caremark Corp (CVS.N) has been the subject of a U.S. Federal Trade Commission investigation over some of its business practices since August, the company said on Thursday," Reuters reports. "Various groups have asked the government to look into CVS Caremark's practices since drugstore chain CVS bought pharmacy benefits management business Caremark Rx Inc in March 2007. They claim that changes to services in the pharmacy benefits business since the acquisition have led to higher prices, compromised quality of care and pushed patients to choose CVS drugstores over other pharmacies."
The announcement came shortly after CVS said its pharmacy benefits business had lost billions of dollars. "CVS said it is confident that it is conducting its business in compliance with antitrust laws. It said its practices and the services it offers are designed to cut healthcare costs and expand choices for consumers" (Wohl, 11/5).