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WOONSOCKET, R.I. – CVS Health has named Prem Shah group president, reporting to president and chief executive officer David Joyner. Steve Nelson has been named president of Aetna, also reporting to Joyner. Both appointments, announced during the company's earnings call, are effective immediately.
As group president, Shah will be responsible for the operational performance and integrated value creation across CVS Caremark, CVS Pharmacy, and the company's Health Care Delivery businesses.
Shah joined CVS Health in 2013 and has held leadership positions in the pharmacy benefit management, specialty pharmacy, and pharmacy businesses. He was most recently executive vice president and chief pharmacy officer, CVS Health and president, Pharmacy and Consumer Wellness, with oversight and responsibility for the company's omnichannel pharmacy strategy. Prior to his most recent role, Shah held several senior leadership positions at CVS Health where he provided strategic oversight of pharmacy functions.
"Prem is a strong operator and innovator with deep experience across our businesses, and in his role, he will help me and the rest of our leadership team drive improvements in our financial and operational performance across our company," said Joyner. "I am confident in the future of our integrated model, and that Prem and Steve's leadership will help further position us to deliver greater value from our integrated business model."
Nelson has deep experience leading several managed care and health care delivery companies, and most recently served as chief executive officer of ChenMed, a leading value-based primary care company. He is also a former chief executive officer of UnitedHealthcare, a $200 billion division of UnitedHealth Group. During his tenure at UnitedHealth Group, Nelson held several leadership roles leading UnitedHealthcare's Commercial and Government businesses to significant improvements in growth, profitability, employee engagement and culture, and customer satisfaction.
"Steve is an industry veteran who has successfully led multiple segments of a diverse managed care company and driven innovation and growth throughout his career," said Joyner. "I will work closely with him and the team, building upon and accelerating the plan to advance Aetna forward."
As noted, the appointments were announced during the company's third quarter conference call. Among the highlights of the quarter:
- Third quarter total revenues increased to $95.4 billion, up 6.3% compared to the prior year
- Third quarter GAAP diluted EPS of $0.07 and Adjusted EPS of $1.09
- Third quarter GAAP diluted EPS and Adjusted EPS include charges to record premium deficiency reserves of approximately $1.1 billion ($0.63 per share) in the Health Care Benefits segment
- The company generated year-to-date cash flow from operations of $7.2 billion
“Our integrated model accelerates our ability to uniquely do what is most important to today’s health care consumers: deliver lower cost of care, a simpler experience and better outcomes," Joyner said. "Our third quarter results reflect strong performance in the Health Services and Pharmacy & Consumer Wellness segments, and also highlight the continued need to work across our enterprise and address macro challenges to the Health Care Benefits segment. My commitment to our CVS Health colleagues and our customers is to drive focused execution of our integrated strategy to improve the health of the 185 million people we are privileged to serve.”
