The aqustion of Aetna was a good forward thinking idea at the time of Larry and Bertilini. But where are the two now? They made their money and retired. Just like so many after them with the expectation of Karen which I predict she will follow suite once she's made as much money as the two of them
The US government should of never approved the acquisition. I am curious what kind of kickbacks came out of that deal.
They wanted to be Amazon and Walmart ha yeah right. It was a bad deal, period.
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Actually, Bertolini is not retired but he is the CEO of Oscar Health. He was also the co-CEO of one of the bigger hedge funds (Bridgewater Associates). A little birdy told me that Mark is making calls as we speak to see if he can pull together 30 or 40 billion in funding to buy Aetna when it is inevitably sold so that Retail and PBM can be retained.
Let's talk reality. In store pharmacy industry is dying. More so apparently post COVID-19. People are use to ordering their prescriptions through an app or through PCP , urgent care, and dare I say online delivery. They don't want to walk into a store and buy over priced store items they can get cheaper at the dollar store down the block or delivered by Amazon. I have a CVS employee discount and even I don't want to buy that over priced make-up and toilet paper.
Larry had a genius idea to drive people to his stores with primary care and behavioral services before Walmart. He had the stores on every neighborhood block to really dominate it, more than Walmart. Aetna's healthcare is about the only good thing going for the stores. Now why Larry stay to see it all the way who knows.
Regardless both CVS and Aetna need each other as more startup tech companies drive the industry foward.
And as someone mentioned if United Healthcare can do it why can't we?
@quw+1uOaPmnv, oh my you just totally read my mind. I wish I could talk to you right now. Totally se-y.
Aetna side of the buzz here. When Dan Finke left nobody and I mean nobody bought the great townhall lie. You are 100% right on the Aetna politics. Anyone with half a brain could see it with Dan and Kelly Munson being let go. Kelly Munson never made a impact but it was hard to see Dan go. Aetna has a very political toxicity environment. And it begins at the head and rolls down.
"When this bo-m was slowing she decided to go big on Government Business by bidding low to win a ton. " Curious on that statement , it's to my belief Medicaid is the loss and Medicare the money maker but I guess if you say you are gaining business and winning something long enough it sounds true to others.
Karen hiring Brian was a shocker to most and felt fishy like she had been courting him for a long time. Culturally everyone hated him and Karen for the RTO, the moral and productivity is completely down.
"For good measure she forgot the whole idea of CVS has pharmacies. After all would you think Karen would go pick up her own stuff." Come to think of it since she became CVS CEO has she had really one original thought? She seems to be repeating herself and riding curtails off of Merlo for Pharmacy.
It's easy to hide behind Aetna's government sector whenever it goes badly, blame it on the economy, regulators, Feds. And it's easy to to tote business is good when the economy tanks (pickup Medicaid) but she sure did not see utilization coming.
I am so happy to hear Dan Finke is living his best life. Last four years so many have at our competitors. But that's MCOs we swap Leaders like STD.
Great point on the changes. Merlo and Bertilini got they money...Big Money...and left.
Trouble is Karen of Aetna became the CEO. There were good people in all three organizations but Aetna, staid insurance firm, was more about politics then good business sense. Things change slowly in the insurance world as there are laws, rules at federal and state level. Karen was and is the classic Aetna exec with political skills and limited business skills.
Top off the idea of 'Oh, My God' a bad choice she looked good for a bit with Covid benefiting health care firms. So off she went with her book tours, mega DEI pressure, and never really understanding the Caremark or CVS business.
When this bo-m was slowing she decided to go big on Government Business by bidding low to win a ton. Not a sound financial decision but she's a star in her own mind. When Dan Finke pointed out that was a big risk Karen sent him packing. Called it leaving for health. Shortly later Dan was healthy and now he is CEO of Convey. So Karen hired a yes man, got the low bid and 1 year later profits down and yes man is gone.
For good measure she forgot the whole idea of CVS has pharmacies. After all would you think Karen would go pick up her own stuff.
I don't see her lasting up to the typical CEO ten years stent. Especially if she does not get some big wins. If she does get in some big wins from now to her ten years, I can definitely see her doing another book eye roll. Have you all read her book btw? Or heard her talk about it with interviewers?
Yeah she's a woman, so what. So am I but where's the tiger tycoon morgile or aspiring leadership story we all want to read. regardless of s-x.
I don't see Karen "retiring." Her legacy is in shambles, so leaving now means a walk of shame. No more fancy parties to wear $2,700 dresses to. No more gauzy TV interviews or book deals. No more shaking down business acquaintances to give to her charity. The Board (with Glenview Capital's help) will have to push her down the escalator and out the door.