CVS Health names new president

A leader in CVS Health will take the helm of the company as president and CEO.

CVS Health announced David Joyner, a 37-year veteran manager in health care and pharmacy benefits, was appointed to replace Karen Lynch, who stepped down from her position in agreement with the company’s board of directors. Joyner will serve on the board and current board Chair Roger Farah will be executive chairman.

One of the largest health care companies in the nation, CVS health serves approximately 90 million members through Caremark, CVS Specialty, and other areas. Joyner began his career as an employee benefit representative at Aetna, then worked as a regional sales manager for Caremark Prescription Services. He served as CVS Caremark’s executive vice president for sales and account services, then CVS Health executive vice president of sales and marketing.

"There is no greater honor than to lead a company whose mission and purpose are completely focused on improving health," Joyner said this month in a news release. "I came back to CVS Health in 2023 because I believed I could give more to the company, and I take this opportunity today for the same reason.

“I am proud to continue working side by side with our 300,000 colleagues who are building a world of health around every consumer,” he said. “Every day, CVS Health expands access, drives greater affordability, and achieves better health outcomes for more than 186 million people. Aligned with our management team and our board, I believe in the future of our company and I am committed to delivering our best every day to everyone we serve."

CVS is the largest chain of U.S. drug stores, according to this CNN report. But it is struggling, with plans to cut 2,900 jobs, and the closure of 244 stores from 2018 to 2020, and announced plans to close another 900 in 2021. The CNN report noted Rite Aid filed for bankruptcy, closing up to 500 stores, and rival Walgreens this month said it will close 1,200 stores.

That analysis said the national drug stores are downsizing after overexpansion in the 1990s and 2000 to drive out competitors and draw more customers. Now they are victims of “shifting consumer habits, competition and changes in the pharmacy industry,” the CNN report said.

CVS acknowledged as much in its “Rx Report: Transforming pharmacy to make healthier happen together.”

“Consumer expectations of community pharmacy have quickly changed, but the pharmacy operational models have not evolved at the same pace,” according to the CVS report. Community pharmacists have a great deal of credibility among patients, and demand for medications remains high – 76% of consumers have at least one active prescription for themselves or a loved one. But “the decades-old pharmacy reimbursement model is due for an update,” the CVS report said, and community pharmacy compensation is not covering the costs of doing business.

The change in CVS leadership comes days before its third-quarter earnings conference call scheduled Nov. 6. For the second quarter and first half of 2024, CVS Health’s total revenue increased. But that report noted the company has a complicated financial picture due to different pressures within its core businesses. Announcing the leadership change, CVS Health also adjusted its preliminary earnings guidance for the third quarter, with measures including a restructuring charge of $1.2 billion related to store closures coming in 2025.