CVS health which was previously known as CVS corporation/ CVS Caremark Corporation is one of the biggest foods and drug retailers in the world.
CVS Health will no have a new CEO appointed by the next year.
CVS has announced that Karen Lynch who is currently the Executive Vice President of CVS health and the president of Aetna health insurance. It has been announced that Karen will be the next President and CEO of the company. Karen will take over Larry Merlo, who will be retiring.
Karen Lynch is planned to take over as CEO on 1st February of 2021 and will join the CEO board of directors. Larry Merlo at that time will hold the responsibility of a Strategic Adviser to help in the transition process.
CVS health further expressed that Larry Merlo will continue his service till the next annual shareholders meeting which is planned in May 2021 and Larry Merlo will officially retire on 31st May 2021.
Karen Lunch has more than three decades of expertise in the Health Care industry. Before CVS Health, she also had an executive position in Cigna & Magellan Health service and served as a president. She is a health care expert who has complete tenacity of the CVS health business. Her persistent focus on the end customer with a strong track record of growing a company and bringing innovation. The Chairman of CVS Health, David Dorman said “Our board of directors believes that Karen is the right leader to guide CVS Health into its next era of growth as the company continues its transformation.”
Karren Lynch Joined CVS Health in November 2018, when she was added as the Executive Vice President of CVS Health.
Karen Lynch’s current role is that Lynch drives Aetna’s system to convey buyer-centered medical care benefits and manages the improvement of enhanced venture medical services arrangements that influence CVS Health’s resources, which incorporate retail, claim to fame and long-haul care drug stores; in-store facilities; and over-the-counter medical services items. Prior to coming to Aetna in 2012, she was the leader of Magellan Health Services and held different senior chief situations at wellbeing safety net provider Cigna.
David Dorman further stated that “This leadership transition comes at the right time for CVS Health. This month marks the two-year anniversary as one company, with our foundation clearly established and significant positive momentum across the company, As Larry has been transparent with us about his overall plans, we were able to put a thorough, multiyear process in place to consider and evaluate internal and external candidates. That process led to the selection of Karen Lynch. Larry’s collaboration with Karen in the coming months will ensure an effective leadership transition.”
CVS Health is well aware that Karren Lynch has carried an essential role in the integration of Aetna which includes launching of new products and services, Medicare Advantage membership plan and she had a leading role in the Companies Health-HUB health center strategy. Karren Lynch was also mentioned in Business Insider’s “Top 100 People Transforming business” furthermore for the last five years i.e from 2016 till 2020 she was also included in Fortune’s list of “the 50 Most Powerful Women in Business”. She has also been recognized in the top 25 women “100 most influential people in Healthcare” by Modern Healthcare in 2017 and 2019.
Karren Lynch commented that “I am deeply honored to have the opportunity to succeed Larry and lead CVS Health on the next phase of our important journey to meet America’s health care needs, never before has our purpose been more critical than during these unprecedented times. Together with the CVS Health leadership team and all of our colleagues, I will work to build on the strong foundation Larry has put in place to continue to make health care more accessible and affordable, driving better health outcomes for our consumers and communities. I am highly confident about our company’s future and look forward to further accelerating the value we bring to all of our stakeholders.”
Larry Merlo served as CVS’s President and CEO since March 2011, the point when he succeeded Tom Ryan. A people group drug specialist via training, with more than 40 years in drug store wellbeing, Larry Merlo appointed CVS Pharmacy in 1990 as senior Vice President of stores through the organization’s procurement of Peoples Drug. He ascended through the leadership positions in the drug store and retail parts until being named president in 2007 and afterward adding the title of COO (Chief operating officer) in 2010.
Under the Leadership of Larry Merlo CVS has the regional drug chain and retailer has now become one of the largest Health care companies in the world while it is ranked the biggest US Pharmacy care, provider.
Under Larry Merlo’s Leadership, CVS has made several drug chain acquisitions such as Osco/Sav-on, Longs Drug stores, Eckerd, and Revco. They have also acquired MinuteClinic (Health Provider) in 2006. In 2015 Target Corp.’s Pharmacy business was acquired for $1.9 billion, in 2007 Caremark RX was acquired for $26.5 billion. That arrangement denoted the start of CVS’s change from a drug store retailer into a wide medical care administration organization, which climax in the consolidation with Aetna in 2018.
Larry Merlo stated that “I am incredibly proud to have had the opportunity to lead CVS Health over the past decade as we pursue our important purpose to help people on their path to better health, I am grateful to our entire CVS Health team for their dedication and hard work in helping us build a powerful, integrated health services company that will enable us to transform how health care is delivered across the country. Karen has been a key partner to me in our foundational work over the last two years, and her experience and vision will be critical in driving forward CVS Health’s journey of enhancing value for our customers as the nation’s leading health care company for years to come.”
Under Larry Merlo’s Leadership, CVS retains its position as one of the top retailers and Leading providers of OTC health, Beauty, and personal health care products. CVS is also known as a top food retailer with fresh food offerings in CVS pharmacy stores. Larry Merlo has also flourished the ExtraCare program with 62 million members.
CVS was also Listed in Supermarket News list of “Top 75 Retailers and wholesalers”. CVS was No. 18 in sales and No.3 in stores.
David Doorman stated for Larry Merlo, “On behalf of CVS Health and the board, I would like to thank Larry for his outstanding leadership and deep commitment to the company. During his tenure, CVS Health has transformed from a regional retail pharmacy into the nation’s leading diversified health services company, with over $250 billion in revenues, Larry led CVS Health’s industry-disrupting acquisition of Aetna in 2018, and strategically positioned the company’s community-based health clinics to provide integrated and holistic health care services to all Americans. In doing so, he created new ways to deliver health care through CVS Health’s unparalleled suite of assets, including a national health insurance plan provider, a pharmacy benefits manager, community-based retail pharmacies, and a long-term care pharmacy services business. No discussion of Larry’s tenure would be complete without recognizing his leadership of the company’s bold decision to eliminate the sale of Tobacco products from all CVS Pharmacy stores, which was widely credited with being a catalyst for the reduction in smoking levels in the U.S.,”
CVS now operates over 9900 retail locations in 49 states and 1100 MinuteClinic health clinics. The organization fills or oversees 2.8 billion remedies yearly and serves 103 million PBM individuals and 23 million health advantage individuals. CVS in February announced an all-out financial 2019 income of $256.8 billion, up 32% year over year.