CVS Health Corp. is making a significant strategic shift by exiting its core infusion services business, a move that could lead to the closure or sale of 29 regional pharmacies in the coming months. This decision, confirmed by a company spokesperson, marks a pivotal change in CVS's business operations as it navigates a challenging healthcare environment.

The announcement was made public through a corporate memo dated October 8, which detailed that CVS had stopped accepting new patients for antibiotics, muscular health drugs, and intravenous nutrition services. This strategic exit is part of a broader review of CVS's operations, as the company faces increasing costs in its drugstore chain and medical expenses at its Aetna health insurance division.

CVS acquired Coram LLC, a provider of drug infusion services, for $2.1 billion in 2013. However, the infusion services sector has faced significant challenges, prompting CVS to reconsider its involvement. Despite the exit from core infusion services, CVS will continue to offer specialty medications and enteral nutrition at select locations and maintain nursing services nationwide.

While the company has not yet announced specific workforce reductions related to this move, it has indicated that any affected employees will be notified by mid-November, with roles potentially ending in January. This decision is separate from CVS's recent announcement to cut approximately 2,900 corporate jobs to reduce costs.

CVS's shares remained stable at $66.91 following the announcement, as investors and stakeholders digest the implications of this strategic shift. The company is also exploring the possibility of selling the affected pharmacies, which could mitigate some of the impacts of the closures.

This development comes amid broader strategic evaluations within CVS, as the company seeks to balance its retail and insurance operations under increasing investor scrutiny and rising healthcare costs.