- In a Wednesday interview with CNBC’s Jim Cramer, CVS CEO Karen Lynch mentioned she is taking duty for the corporate’s Aetna insurance coverage enterprise after some metrics over the latest quarter missed expectations.
- “I am taking direct possession and am going to deal with the monetary and operational execution of that enterprise,” she mentioned.
In a Wednesday interview with CNBC’s Jim Cramer, CVS CEO Karen Lynch mentioned she is taking duty for the corporate’s Aetna insurance coverage enterprise after some metrics over the latest quarter missed expectations.
“Our downside … is the Aetna enterprise. We have had some challenges, the business has had some challenges, and I, as I mentioned this morning, I wasn’t proud of the monetary efficiency of that enterprise,” Lynch mentioned. “I am taking direct possession and am going to deal with the monetary and operational execution of that enterprise.”
CVS slashed its full-year steerage on Wednesday for the third consecutive quarter, and shares had been down 3.21% by the shut. Insurers have broadly seen prices improve as Medicare Benefit sufferers return to hospitals for procedures that had been postponed as a result of pandemic. CVS additionally introduced that Aetna President Brian Kane would depart his function, and Lynch would take over administration of the enterprise.
Lynch mentioned it’s essential to “have a look at the totality of the enterprise,” saying she was happy with different segments like retail and pharmacy. She added that the corporate has “actually robust momentum going into 2025.”
She additionally mentioned the brick-and-mortar retailer facet of the enterprise, saying theft continues to be a difficulty although it has decreased considerably. She additionally mentioned CVS is piloting a brand new program at a number of shops in New York the place prospects can unlock merchandise on cabinets utilizing QR codes. Based on Lynch, the corporate can also be on monitor to achieve its three-year objective of closing 900 shops by the top of 2024.
“I do know this enterprise. I do know it effectively. I do know the place the alternatives are. I do know the place the problems are and I’m very centered on it proper now,” Lynch mentioned.
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