Former Oak Street CEO Mike Pykosz leaves CVS

Mike Pykosz, the former CEO of Oak Street Health, will leave CVS Health as part of the company's latest leadership shake-up.

CVS announced Tuesday that Sree Chaguturu, M.D., will step into the role of president for healthcare delivery alongside his existing title as chief medical officer. In the announcement, CEO David Joyner said that Pykosz let the company's top brass know "earlier in the year that he planned to move on from the company and we appreciate him helping to lead a smooth transition.”

As CMO, Chaguturu oversees CVS' medical affairs organization and is responsible for clinical quality, patient outcomes, addressing access gaps and managing health costs across the enterprise. He was also previously the chief medical officer at CVS' Caremark pharmacy benefit manager.

"Sree and I worked closely together when he started at CVS Health, serving as chief medical officer of CVS Caremark," Joyner said in the press release. "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."

“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," Joyner added.

Chaguturu also previously served as chief population health officer at Mass General Brigham, and he is a practicing physician at Massachusetts General Hospital.

The healthcare delivery segment has been a bright spot for CVS as it it weathers significant financial struggles. On its most recent earnings call, CVS said the number of Aetna enrollees served by its Signify Health arm has doubled over the past year, and the number of Aetna members enrolled at Oak Street has quadrupled since that deal closed.

CVS acquired Oak Street Health in a $10.6 billion deal that closed in May 2023.

“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 in the release. “We will continue to keep our patients front and center of every decision we make."

The move is the latest update to the leadership team at CVS amid its financial troubles. CEO Karen Lynch stepped down Oct. 18, with Joyner taking the helm of the company.

Over the summer, then-Aetna President Brian Kane was ousted, with Lynch taking over the day-to-day operations of the health plan. CVS has since named UnitedHealthcare veteran Steve Nelson as the president of Aetna, and it promoted CVS Pharmacy chief Prem Shah to the role of group president.

Earlier this week, CVS also revealed that it had reached an agreement with a key investor, Glenview Capital Management, that adds four additional members to its board, including Glenview CEO Larry Robbins.