CVS Health hires a physician to lead its healthcare industry

CFS Health increased Dr. Sreekanth Chaguturu to lead the company’s healthcare operations, a year after the company spent more than $20 billion on home health provider Signify Health and senior clinic operator Oak Street Health.

Leaving the company is Oak Street co-founder Mike Pykosz, 42, who led the Chicago-based startup for which CVS paid more than $10 billion last year. Oak Street is in the midst of a major expansion of stand-alone senior clinics and centers integrated into drugstores located next to pharmacies.

But new CEO David Joyner said Tuesday Chaguturu, 46, will now become president of CVS Healthcare, replacing Pykosz, in addition to the doctor’s current role as executive vice president and chief medical officer of the entire company.

“Sree and I worked closely together when he joined CVS Health, where he was Chief Medical Officer of CVS Caremark,” Joyner said in a statement. “In that role, and as the leader of our company’s medical affairs, Sree has served as a trusted advisor to our customers, their members and CVS Health colleagues, consistently demonstrating our commitment to patients.”

The additional responsibilities do not appear to be any indication that these medical providers’ assets are disappearing. The company’s health care businesses include Signify, which CVS bought for more than $8 billion last year, Oak Street and more than 1,000 MinuteClinics, staffed by drugstore nurses.

In the announcement regarding Chaguturu, CVS reiterated “positive trends” in the healthcare sector that were announced during its third-quarter earnings call earlier this month.

“The number of Aetna members served by Signify nearly doubled compared to last year, supported by our ability to leverage touchpoints in CVS Health,” CVS said of the synergy between its ownership of Aetna, the nation’s third-largest health insurer. country, and the home care sector. .

Signify Health has a national network of more than 10,000 physicians in all 50 states. These physicians, nurses and physician assistants make visits to patients’ homes “to identify a patient’s clinical and social needs, and then connect them with appropriate follow-up care and community-based resources, providing the patient with a more connected, effective care experience,” Signify say and CFS.

Oak Street launched a national expansion earlier this year of new centers alongside pharmacies in renovated drugstores. Joyner thanked Pykosz “for his leadership and all he has done to help create a connected experience for those we serve,” the CEO said. “Mike informed us earlier this year that he intended to leave the company and we appreciate his contribution to a smooth transition.”

In addition to the new formats, Oak Street already has more than 200 standalone health centers in 25 states and continues to expand that model.

“Corporate connections continue to accelerate patient growth on Oak Street,” CVS added. “Membership at risk increased 32 percent from the same quarter last year and the number of Aetna members enrolled on Oak Street has increased approximately fourfold since the completion of the acquisition. Oak Street Health, Signify Health and MinuteClinic all represent ways the company is building a world of health around every consumer.”

Chaguturu has served as Executive Vice President and Chief Medical Officer of CVS Health, where he leads the medical affairs organization and is “focused on advancing the highest possible clinical quality standards, expanding access to care, improving patient outcomes and reducing overall healthcare costs within the CVS Health industry. company,” the company said.

Before joining CVS, Chaguturu served as Chief Population Health Officer at Mass General Brigham in Boston, where he led the accountable care organization and other clinical programs for the largest healthcare system in Massachusetts.

“Delivering healthcare connects the dots for the people we care for as we provide better care in our Oak Street Health clinics, in our pharmacies at MinuteClinic and at home through Signify Health,” said Chaguturu. “We will continue to put our patients at the heart of every decision we make. If we succeed in our work, it will mean that more than 185 million people in our country will live better lives. This is what we are capable of at CVS Health as we stay focused on providing the best care for our friends, family and neighbors.”