CVS Health Reshuffles Leadership, Names Steve Nelson to Lead Aetna

CVS Health Corporation has appointed Steve Nelson, former head of insurance at UnitedHealth, to lead its Aetna division amid efforts to address rising medical costs that contributed to an anticipated earnings miss.

In a significant leadership shakeup, CEO Karen Lynch was replaced by David Joyner as the company faces investor pressure to improve cost management. CVS also announced $1.2 billion in charges related to layoffs, store closures, and the shutdown of certain business lines as part of its restructuring strategy.

The company’s third-quarter adjusted profit fell sharply to $1.09 per share, impacted by underestimated medical costs and Medicaid plan adjustments. While demand for medical services stabilised toward the end of the quarter, CVS refrained from issuing a 2024 forecast, signalling ongoing uncertainties.