CVS Health Initiatives Increase Affordability, Access To Medicine

CVS Health recently announced several initiatives to boost affordable healthcare and increase access to medicine for customers. 

First, the company named Prem Shah to the newly created role of chief pharmacy officer. Shah will oversee the omnichannel pharmacy strategy, effective immediately. Shah joined the company in 2013 and is currently executive vice president.

And on January 1, Shah and Michelle Peluso will become co-presidents of CVS Health’s retail business. Peluso joined CVS Health in 2021 as executive vice president and chief customer office and will be responsible for overseeing front-store strategy and operations.

“Prem and Michelle are ideally suited for their new roles and will be instrumental to CVS Health as we continue to execute against our strategy of delivering an integrated health care experience centered around the consumer,” Karen S. Lynch, president and CEO of CVS Health, said in the announcement.

Both Shah and Peluso will report to Lynch. 

In addition, Neela Montgomery, currently executive vice president and president of CVS Retail/ Pharmacy, left the company. But Montgomery will remain in her role until the end of 2021.

Lynch highlighted that the company appreciates Neela’s contributions during a challenging period when CVS retail stores played a vital role in the country’s fight against COVID-19.

CVS Health will also create new store formats to boost engagement with consumers as part of the strategic review of its retail business. Three models will serve as community health destinations. 

The first model will be dedicated to offering primary care services, while the second model will be an enhanced version of HealthHUB locations with products and services designed for everyday health and wellness needs.

And the third model will be traditional CVS Pharmacy stores that provide prescription services and health, wellness, personal care, and other convenient retail offerings. 

CVS Health stated that it will reduce store density in certain locations and close about 300 stores annually for the next three years. The changes will begin in the spring of 2022. As a result, the company anticipates an impairment charge in the fourth quarter of 2021 of $1 billion and $1.2 billion.

“Our retail stores are fundamental to our strategy and who we are as a company,” Lynch said.

“We remain focused on the competitive advantage provided by our presence in thousands of communities across the country, which complements our rapidly expanding digital presence.