Navigate the healthcare industry
Healthcare Brew covers pharmaceutical developments, health startups, the latest tech, and how it impacts hospitals and providers to keep administrators and providers informed.
President and CEO David Joyner has appointed a new leader to CVS Health’s insurance arm as one of the first moves of his tenure.
The struggling chain announced that former UnitedHealthcare CEO Steve Nelson will become president of Aetna, effective November 6.
This is Aetna’s third leadership switch-up in as many months, after former president and CEO Karen Lynch was replaced by Joyner in October. Lynch—who had been at the helm of CVS Health since 2021—had taken over day-to-day leadership of Aetna in August, replacing then-President Brian Kane.
Leadership limbo. The chain also announced that internal executive Prem Shah had been promoted to group president of CVS Health, also effective Wednesday.
In this role, Shah will oversee pharmacy benefit manager CVS Caremark, CVS Pharmacy, and the company’s healthcare delivery businesses, according to a press release.
Struggling to keep up? We don’t blame you. At this point, half of the 10 members of CVS Health’s leadership team were appointed to their positions within the last four months.
Failing financials. The changeups come following continued financial pressure on the chain.
Nelson and Shah’s appointments were announced the same day that CVS released its Q3 earnings. Adjusted earnings per share were $1.09, down more than half from $2.21 in Q3 2023. A CVS Health press release attributed the decline to Aetna’s lackluster results amid its struggling Medicare business.
“Today, we announced two leadership appointments that will help us drive better performance across the enterprise, and at Aetna, specifically,” Joyner said during Wednesday’s Q3 earnings call.
Aetna saw a $924 million adjusted operating loss in Q3 compared to an adjusted operating income of $1.5 billion in the prior year.
The fall was driven by the same challenges plaguing other insurers, including higher Medicaid acuity, lower Medicare Advantage star ratings, and increased utilization, Joyner said during the call.
“This performance is unacceptable; however, I am confident in the long-term prospects of Aetna,” Joyner added.