Executives to play major roles in combined company.
WOONSOCKET, R.I. — CVS Health has announced the management team that, following the close of the Aetna acquisition, will lead the combined company into the future. Aetna will operate as a stand-alone business unit within the CVS Health enterprise following the close and will be led by members of its current management team. In addition, members of both the Aetna and CVS Health management teams will play significant roles in the newly combined company. The transaction is expected to close in the second half of 2018, subject to required regulatory approvals. Until the close of the transaction, CVS Health and Aetna will continue to operate as two separate companies.
“We’re very excited to be taking this milestone step in the journey to combine our two great companies,” said CVS Health president and chief executive officer Larry Merlo. “The talent of both organizations is reflected in the management team that we are naming today and that will report to me as of the close of the transaction. I look forward to working alongside this outstanding group of individuals as we take on the task of transforming the way health care is delivered in America — engaging consumers with the care they need, when and where they need it, and making the patient and caregiver experience simpler and more affordable.”
Management positions announced on Wednesday include the following business unit and shared services leaders:
Business unit leadership
• Jon Roberts will continue to serve as executive vice president and chief operating officer of CVS Health with operational oversight for CVS Pharmacy, CVS Caremark and Omnicare.
• Karen Lynch, currently president of Aetna, will serve as executive VP of CVS Health and president of the Aetna business unit.
• Fran Soistman will continue to serve in his current position of executive VP and head of government services for Aetna, leading the Medicare, Medicaid and Federal Plans businesses, reporting to Lynch.
• Dr. Alan Lotvin, currently executive VP of specialty pharmacy at CVS Caremark, has been named executive VP of transformation, with oversight of the portfolio of business transformation initiatives for the combined company.
• Richard di Benedetto will continue to serve in his current position of president of Aetna International.
Shared service leadership
• Shawn Guertin, currently executive VP, chief financial officer and chief enterprise risk officer at Aetna, will assume the position of executive VP and CFO at CVS Health. In this role, Guertin will have oversight of investor relations, financial planning and analysis for the lines of business, tax and treasury functions, and accounting.
• Thomas Moriarty will continue to serve as executive VP, chief policy and external affairs officer, and general counsel at CVS Health. Moriarty’s responsibilities include government affairs, corporate communications and legal.
• Dr. Troy Brennan will continue to serve as executive VP and chief medical officer for CVS Health. Brennan provides oversight for clinical and medical affairs and health care services.
• Rick Jelinek, currently executive VP and head of enterprise strategy for Aetna, will be appointed executive VP at CVS Health. In this role following the close of the transaction, Jelinek will continue to co-lead the combined company’s integration efforts alongside Josh Flum, executive VP of enterprise strategy and corporate development at CVS Health.
• Lisa Bisaccia will continue to serve as executive VP and chief human resources officer. In addition to leading the human resources organization, Bisaccia will provide strategic oversight for the combined company’s corporate social responsibility and philanthropic activities.
Also as part of the transition of the organizations, several executives from both CVS Health and Aetna will be departing. David Denton, who currently serves as CVS Health’s CFO has elected to depart the company at the close. Similarly, Aetna executives Steven Kelmar, executive VP of corporate affairs; Thomas Sabatino Jr., executive VP and general counsel; and Thomas Weidenkopf, executive VP and chief human resources officer, will remain in their roles until the close of the transaction.
To assist with the transition following the close, Aetna executives Dr. Harold Paz, executive VP and chief medical officer, and Meg McCarthy, executive VP of operations and technology, will remain with the organization for a period of time.
“I would like to extend my thanks and gratitude to all of these individuals who have so ably served both organizations during a time when the health care marketplace has been changing dynamically,” said Merlo. “I am especially grateful to Dave Denton for his leadership and contributions during nearly 20 years serving CVS Health — from the company it was to the company it has become. Dave has been a driving force behind the growth of CVS Health, and I wish him all the best.”
As previously disclosed, upon the closing of the transaction, three of Aetna’s directors, including Aetna’s chairman and CEO Mark Bertolini, will be added to the CVS Health board of directors.