CVS Health releases third-quarter performance and announces Karen S. Lynch as the next CEO.
Q3 performance driven by its diversified assets
Total revenue increased by 3.5% to $67.1bn and was attributed to growth in its Retail / Long-Term Care (LTC) segment and Health Care Benefits segment.
Retail/ LTC revenues grew by 5.9% to $22.7bn, driven by higher prescription volume of +4.6% and increased front store sales by +2.7%. The increase in front store sales was primarily due to strong consumer health sales and increased baskets size.
Total revenue for Health Care Benefits segment increased by 8.8% to $18.7bn and was driven by membership growth in government products and favourable impact of the reinstatement of the Health Insurer Funds (HIF) for 2020.
President of Aetna becomes CVS Health’s new CEO
CVS appoints Karen S. Lynch, executive vice president of CVS Health and president of its Aetna health insurance subsidies as its new president and CEO, effective from 1st February 2021. Lynch will also join the board of directors. Lynch takes over from Larry Merlo who announced his retirement after serving as CEO for a decade.
In her current role as president of Aetna, Lynch has led the company’s strategy to deliver customer-focused and high-value health care. she also led the integration of Aetna into CVS Healthcare and launched its first suite of transformative products and services, including the Aetna Connected Plan, powered by CVS Health.
David W. Dorman, CVS Health Chairman said,
"Karen is a seasoned health care expert who knows our business. She brings a relentless focus on the customer, a strong track record of driving growth and innovation, and proven transformational leadership, all of which position her well for success.”
Want to know more?
Find the latest news and insight on health & beauty and drugstores here