CVS announces Dr. Sreekanth Chaguturu as president, Health Care Delivery
Mike Pykosz, who has served in that role and confounded Oak Street Health, is leaving CVS.
Dr. Sreekanth Chaguturu is the new president of Health Care Delivery, as well as EVP and CMO.
Photo: Courtesy of CVS Health
Oak Street Health cofounder Mike Pykosz, president of CVS' healthcare delivery arm, is departing CVS.
CVS released the news Tuesday, when it announced that Dr. Sreekanth Chaguturu will replace Pykosz and become president, Health Care Delivery, in addition to his current role as executive vice president and chief medical officer.
"Sree and I worked closely together when he started at CVS Health, serving as chief medical officer of CVS Caremark. In that role, and as the leader of Medical Affairs at our company, Sree has served as a trusted advisor to our clients, their members and CVS Health colleagues, consistently demonstrating our commitment to patients," said CVS Health President and CEO David Joyner. "At the same time, I thank Mike for his leadership and all he has done to help create a connected experience for those we serve."
WHY THIS MATTERS
Pykosz had planned to step down, according to Joyner.
"Mike let us know earlier in the year that he planned to move on from the company and we appreciate him helping to lead a smooth transition," Joyner said.
Joyner, Caremark's president, became president and CEO of CVS Health in October, after president and CEO Karen Lynch left per agreement with the company's board of directors.
CVS has repeatedly cut guidance this year due to financial pressures from lower reimbursement rates for prescription drugs – which has hit all pharmacies – and higher medical costs.
Stock prices dropped nearly 20% this year, CNN said in October.
Chaguturu represents another promotion from within the organization. As executive vice president and chief medical officer of CVS Health, he leads the CVS Health medical affairs organization and is focused on clinical quality standards, improving patient outcomes and reducing overall healthcare costs, CVS said.
Chaguturu previously served as chief medical officer of CVS Caremark, where he provided clinical oversight of the pharmacy benefits manager.
Before joining CVS Health, Chaguturu was chief population health officer of Mass General Brigham in Massachusetts. He led the system's accountable care organization and numerous clinical care delivery and innovation programs, CVS said. He is also a practicing internal medicine physician at Massachusetts General Hospital.
THE LARGER TREND
CVS Health acquired Oak Street Health last year for $10.6 billion.
Oak Street Health is a multi-payer, value-based primary care company focused on older adults.
ON THE RECORD
"Health Care Delivery 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," Chaguturu said. "We will continue to keep our patients front and center of every decision we make. As we succeed in our work, it means more than 185 million people in our country live better lives. This is what we are capable of at CVS Health when we stay focused on delivering the best care for our friends, family, and neighbors."
Email the writer: SMorse@himss.org
