Mike Pykosz is no longer president of healthcare delivery at CVS Health.
Pykosz, who co-founded Oak Street Health and was CEO when it was acquired by CVS in 2023, has decided to leave the company and will be replaced by Chief Medical Officer Dr. Sreekanth Chaguturu, according to a Tuesday news release. Chaguturu will continue his role as chief medical officer at CVS, the release said.
Related: Wall Street weighs in on CVS Health CEO shake-up
Pykosz's exit is the latest shakeup in CVS' executive team as the company tries to recover from extensive financial woes. The retail pharmacy chain ousted former CEO Karen Lynch in October and tapped CVS Caremark President David Joyner to take the helm. Brian Kane, formerly the president of the Aetna insurance unit, also departed the company in August. Steve Nelson was named Aetna president in November.
CVS has battled rising medical costs in its Aetna insurance unit and lagging consumer demand at its stores. CVS announced $2 billion in cost-cutting measures in August and began conducting a strategic review of the company's assets. CVS cut its profit outlook three times this year and eventually withdrew it altogether in October.
The latest leadership change raises questions about the future of CVS’ healthcare delivery strategy, which includes primary care provider Oak Street Health and in-home care company Signify Health.
Pykosz spearheaded efforts to expand Oak Street's footprint, with plans to add 50 to 60 clinics in 2024. A CVS spokesperson said Tuesday the company is not expecting any immediate effects on Oak Street's plan.
CVS has sought to integrate Oak Street into the larger business, replacing some retail store space with clinics and marketing the senior-focused care provider as complementary to its MinuteClinic offering.
Big retailers have been struggling to make healthcare services a viable business model. Walmart, for example, shut down its health unit and closed all 51 clinics in June. Walgreens-backed VillageMD, a primary and multispecialty care provider, shuttered 160 clinics in the first few months of the year. Some retailers are also having trouble attracting seniors to their healthcare offerings, despite billions of dollars in investments.
