CVS Caremark was founded as MedPartners, Inc. in 1993 in Birmingham, Alabama by several local businessmen as a physician practice management (PPM) company.

[1] HealthSouth, New Enterprise Associates, and Richard M. Scrushy stepped in to provide the company with early financial backing.

[3] In August 1995, MedPartners announced the acquisition of Mullikin Medical Enterprises, a PPM company based in California.

Caremark International was founded in 1979 in Newport Beach, California as a provider of specialized medical services and products to chronically ill patients at home.

[10] [11] MedPartners announced in October 1997 it was being acquired for $6.8 billion by PhyCor, a smaller PPM competitor based in Nashville, Tennessee.

[12] PhyCor called off the merger in January 1998 after problems were discovered with MedPartners' western PPM operations during due diligence.