CVS Health replaces CEO

CVS Health President and CEO Karen Lynch has stepped down, the health giant announced on Friday, as the chain continues to flail financially.

“It has been a privilege to lead this company, and I am confident the team will continue [to] live its mission and purpose to help people on their journey to better health,” Lynch posted on LinkedIn.

Lynch, who served in the role since February 2021, left her post “in agreement with the company’s board of directors,” according to a press release. The board replaced her on Thursday with David Joyner, most recently EVP of CVS Health and president of CVS Caremark.

The release also noted that Roger Farah, chair of CVS’s board of directors, will also become executive chair.

Zooming out. These are just the latest twists in a roller coaster of a year for CVS Health, which is the parent company of CVS Pharmacy, pharmacy benefit manager CVS Caremark, and insurance unit Aetna.

Alongside Lynch’s departure, the chain shared on Friday that it hadn’t met Q3 earnings projections, largely due to continuing struggles in Aetna’s Medicare business as medical costs increased.

Lynch had taken over leadership of Aetna in August, replacing former president Brian Kane, Healthcare Brew previously reported. Aetna’s Q2 earnings had also fallen short of expectations, prompting the change.

CVS also warned it would downgrade its full-year earnings projections for the fourth time since the company’s investor day in December 2023, the Wall Street Journal reported.

Earlier this month, CVS Health was clearly in brainstorming mode, considering solutions including splitting up the pharmacy division and Aetna, Reuters reported on October 1. CVS also laid off nearly 3,000 workers at the end of September.

The chain said in the release that it will share more updates in its Q3 earnings call, which is currently scheduled for November 6.