CVS launches $2B in cost cuts, Aetna president out

CVS launches $2B in cost cuts, Aetna president out
Modern Healthcare; by Fiona Rutherford; 8/7/24
CVS Health Corp. lowered its 2024 earnings outlook for the third straight quarter and announced cost-cutting measures to save $2 billion over several years as healthcare expenses continue to soar. The company also announced the departure of Brian Kane, who took the helm as the president of the Aetna insurance unit just under a year ago. CVS Chief Executive Officer Karen Lynch and Chief Financial Officer Tom Cowhey will temporarily take over his duties during the search for a successor. CVS is slashing spending and streamlining operations as its insurance arm faces pressure from rising US medical costs. Aetna accounts for about a third of the company’s revenue, but its struggles this year are largely to blame for a downturn in earnings and slump in the stock price.