CVS Ousts CEO Lynch, Lowers Earnings Estimates as Medical-Cost Woes Persist

Oct 18
Oct 18, 2024

After multiple disappointing quarters and amid reports that CVS Health Corp.’s board of directors was considering breaking up the company, CVS said on Oct. 18 that it has named a new CEO. Additionally, CVS disclosed that its third-quarter earnings per share (EPS) will be lower than it previously estimated, and its medical loss ratio (MLR) higher — citing medical cost trends that continue to defy expectations.

Both moves caught some Wall Street analysts by surprise, although one offered that “it is hard, given the operational and stock underperformance, to say a change at the top is undeserved.”
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Leslie Small

Leslie has been working in journalism since 2009 and reporting on the health care industry since 2014. She has covered the many ups and downs of the Affordable Care Act exchanges, the failed health insurer mega-mergers, and hundreds of other storylines spanning subjects such as Medicaid managed care, Medicare Advantage, employer-sponsored insurance, and prescription drug coverage. As the managing editor of Health Plan Weekly and Radar on Drug Benefits, she writes and edits for both publications while overseeing a small team of reporters who also focus on the managed care sector. Before joining AIS Health, she was a senior editor for the e-newsletter Fierce Health Payer, and she started her career as a copy editor at multiple local newspapers. She graduated with a dual degree in journalism and political science from Penn State University.