CVS-owned Omnicare files for bankruptcy. What this means for patients, customers

Omnicare, based in Rhode Island and providing pharmacy services to long-term care facilities, filed for Chapter 11 bankruptcy protection after facing a $949 million civil judgment for fraudulently dispensing drugs. CVS Health, which acquired the company in 2015 for $12. 7 billion, is considering options such as selling Omnicare amid its financial struggles. The company reassured patients that pharmacy services will continue uninterrupted during the restructuring period. To support operations, Omnicare has obtained a $110 million debtor-in-possession loan, which, along with revenue from normal operations, will help sustain the business.

The bankruptcy filing reflects significant financial challenges within the long-term care pharmacy sector. Omnicare aims to address these challenges through its restructuring process. The company has not provided a specific timeline for the Chapter 11 proceedings but emphasizes a commitment to delivering reliable services. Omnicare's proactive steps underscore its priority to maintain safe pharmacy services for its patients.