New CVS Health CEO Shakes Up Management, Commits To Integrated Model

Executive Appointments - CVS Health CEO David Joyner promoted Prem Shah to group president, overseeing CVS Caremark, CVS Pharmacy, and healthcare delivery businesses [1][6] - Steve Nelson, former UnitedHealth Group executive, was hired to lead Aetna, the nation's third-largest health insurer [1][8] Financial Performance - CVS Health reported Q3 2025 net income of $87 million, a significant decline from$2.2 billion in Q3 2024 [2] - Revenues increased 6% to $95 billion in Q3 2025, but profits dropped due to a$1.1 billion premium deficiency reserve in the health care benefits segment [4] Business Challenges - CVS Health faces cost control challenges in its Aetna health insurance business and retail pharmacies, contributing to a declining share price [3] - Medicare Advantage plans are under pressure due to increased healthcare utilization by seniors post-COVID-19 pandemic [4] Strategic Focus - CVS Health is committed to its diversified portfolio, including drugstores, outpatient services, primary care clinics, Caremark pharmacy benefit management, and Aetna with 27 million medical members [5] - The company aims to improve financial and operational performance through its integrated business model under new leadership [8][9]