The president of CVS Well being Corp.’s healthcare supply group is getting ready to go away the corporate 18 months after coming aboard with the Oak Avenue Well being group he co-founded.
In a press release, Rhode Island-based CVS stated Mike Pykosz—who launched Oak Avenue in 2012 with Griffin Myers and Geoff Value—had stated earlier this 12 months he deliberate to maneuver on and has helped plan a transition. On the heels of CVS paying practically $10 billion for Medicare-focused Oak Avenue (in addition to greater than $7 billion for Signify Well being) within the spring of 2023, Pykosz was tapped to steer the corporate’s newly constituted care supply belongings, which additionally embody the MinuteClinic areas in CVS’ shops.
Pykosz’s deliberate departure comes on the heels of recent President and CEO David Joyner reshaping different components of his management staff, which has included recruiting former UnitedHealth Group and ChenMed chief Steve Nelson to steer CVS’ Aetna insurance coverage enterprise and naming Prem Shah group president for the CVS Caremark pharmacy profit supervisor, the corporate’s pharmacies and the healthcare supply group.
Entering into Pykosz’s position as head of care supply is Sree Chaguturu, CVS’ chief medical officer since Might 2022. Chaguturu will retain that position, which he took after two-and-a-half years of being CVS Caremark’s CMO. Previous to becoming a member of CVS, he was chief inhabitants well being officer at Mass Normal Brigham.
Phrase of Pykosz’s departure comes simply days after Joyner lauded the enterprise mannequin at Oak Avenue—which has grown to greater than 230 areas from 177 in mid-2023—and stated Signify has the potential to develop properly past its core in-home well being assessments. Each companies have put up good numbers in relation to bringing on Aetna members and integrating CVS’ varied enterprise traces: Oak Avenue now counts 4 instances as many Aetna members as when it was acquired and Signify has doubled the variety of Aetna members it really works with.
“Well being Care Supply connects the dots for the folks we look after,” Chaguturu stated in CVS’ assertion. “As we achieve our work, it means greater than 185 million folks in our nation stay higher lives.”
CVS’ Pykosz information got here a day after the corporate introduced that its board of administrators had appointed 4 new members after talks with activist funding agency Glenview Capital Administration, which has constructed a stake in CVS of practically 1 %. The 4 additions, which embody Glenview founder Larry Robbins, develop CVS’ board to 16 folks.
Additionally becoming a member of the ranks of administrators are:
Leslie Norwalk, an performing administrator of the Facilities for Medicare & Medicaid Companies within the administration of George W. Bush and now a strategic advisor to healthcare ventures
Man Sansone, chairman and CEO of rehabilitation and staffing agency H2 Well being and longtime government at consulting agency Alvarez & Marsal
Doug Shulman, chairman of OneMain Holdings and a former Inside Income Service commissioner in addition to senior government at monetary providers big BNY Mellon
Glenview has been repeatedly lively within the affairs of a number of outstanding healthcare corporations, together with hospital corporations Tenet Healthcare Corp. and Neighborhood Well being Methods Inc. and Well being Administration Associates Inc., which CHS purchased in 2014.
Shares of CVS (Ticker: CVS) have been down practically 1 % and altering arms round $55.70 on the afternoon of Nov. 19, the day the corporate introduced Pykosz’s deliberate departure. They’ve fallen about 3 % over the previous six months, which has trimmed CVS’ market capitalization to about $70 billion.
