WOONSOCKET – CVS Health Corp. has named David Joyner its CEO and president effective Thursday, replacing Karen Lynch, who stepped down from her position in agreement with the company’s board of directors.
Joyner also joined the company’s board of directors. Current board Chairman Roger Farah will now be executive chairman.
“The board believes this is the right time to make a change, and we are confident that David is the right person to lead our company for the benefit of all stakeholders, including customers, employees, patients and shareholders,” Farah said. “CVS Health is responsible for improving health for millions of people across the U.S., and our integrated businesses work together to deliver on our purpose and mission every day.”
Lynch became CEO in early 2021, replacing the company’s long-time leader Larry Merlo. She came to CVS Health in 2018 when the company acquired its Aetna division several years ago.
Her tenure started with the company’s drugstores riding a wave of revenue from COVID-19 vaccines. She then led an aggressive push into care delivery.
Lynch has been recognized by Providence Business News several times, including as one of the 10 Most Influential People in the 2024 Book of Lists. She also was named one of PBN’s 35 “Driving Forces” or local business individuals selected by PBN staff who have made substantial contributions to the business community. Lynch earned more than $63.3 million in compensation throughout 2021 to 2023.
Lynch told analysts in 2021 that “we are closer to the consumer than anyone else,” and providing more care can help the company influence the overall cost of care.
CVS Health spent $8 billion buying home health care provider Signify Health and then another $10.6 billion early last year on Oak Street Health, which runs clinics that specialize in treating Medicare Advantage patients.
[caption id="attachment_479310" align="alignleft" width="300"]
CVS HEALTH CEO Karen Lynch has stepped down and is being replaced by David Joyner as the health care giant continues to struggle with rising costs. /ASSOCIATED PRESS PHOTO/CHARLES KRUPA[/caption]
Rising claims from the company’s Medicare Advantage coverage have hurt CVS Health for much of this year and contributed to repeated trimming of its outlook for 2024. Medicare Advantage plans are privately run versions of the federal government’s coverage program mainly for people aged 65 and older.
CVS Health also said in August that it has been hurt by a drop in quality ratings for those plans and pressure from Medicaid coverage it manages in several states.
On Sept. 30, the company announced it was cutting about 2,900 positions, less than 1% of its workforce as part of efforts to cut costs. On Oct. 7, the company said in a WARN notice sent to the R.I. Department of Labor and Training it was cutting 632 remote and in-person employees tied to its headquarters.
Joyner has 37 years of health care and pharmacy benefit management experience.
He most recently served as executive vice president for CVS Health and president of CVS Caremark. He led the pharmacy services business, which provides solutions to employers, health plans and government entities and serves approximately 90 million members through Caremark, CVS Specialty, and other areas.
(UPDATE: Adds Lynch being honored by PBN in 6th paragraph)
Material from The Associated Press was used in this report.
