CVS Health chief wants to be a part of people’s ‘everyday life’ (published in 2022)

Some companies are so big, so intertwined with the economy and our daily lives, current events and politics, that it can be difficult to understand the true extent of their importance.

CVS Health is one such company. With approximately 300,000 employees, more than 9,000 stores, and more than 40,000 physicians, pharmacists, and nurses on staff, CFS has an outsized impact in the U.S. health care system. And with its 2018 merger with Aetna, the health insurance giant, the company now also insures more than 20 million people.

Last year, Karen S. Lynch took over as CEO, replacing longtime CEO Larry Merlo. For Ms. Lynch, who came through Aetna and previously worked for other insurers, taking on the new job presented a host of immediate challenges.

CVS stores remained open during the pandemic, even though the army of office workers has been working from home for nearly two years. The pharmacies became vaccine distribution centers and testing sites. A jury found last year that CVS and other drugstore chains contributed to the opioid epidemic. And Ms. Lynch, who prefers to steer clear of politics, said she simultaneously stood by the company’s commitment not to donate to Republicans who voted against certifying the results of the 2020 presidential election, while also continuing to lobby against more public options for health care.

Ms. Lynch, who rides her platoon to relieve stress and champions physical and mental health, says she is unimpressed by the myriad complexities and often returns to the words of her aunt, who raised her.

“The reason I’m as decisive as I am is because when I was growing up my aunt told me that you’re supposed to make decisions in your life, and you’re going to have to live with those decisions right, wrong or indifferent,” she said. “If you make decisions as often as I do, you’re making a bad decision. You just have to adapt.”

This interview has been shortened and edited for clarity.

You took over as CEO in the middle of the pandemic. What are some of the challenges you currently face as the leader of this large diversified company?

I never thought I would be taking over as CEO in the middle of a pandemic. But throughout my career, I’ve faced a number of different types of challenges and changes and major strategic issues, and this is different, but it’s not different.

I stepped back and said, “What is our true purpose of the company?” What I want to do is make sure people have access to quality, affordable healthcare and that as a company we can help people navigate the healthcare system. Because we are so central to people’s lives, we have the ability to be even more central to people’s lives. That’s the goal I really want to make, be part of someone’s everyday life where if they’re healthy, they work with us to stay healthy. If they have health issues, they contact us so we can help manage and navigate that.

Can you give me some examples?

Let’s start with a pandemic, right? So you come to CVS for your test and we started that, you know, way back when you came to CVS for your vaccines. We did virtual primary care as a change in how people think. We’ve added behavioral health specialists to our stores, which is really different. We’re going to expand health care. I don’t want people to think of CVS Health as just that drug store. I want them to think about it being a healthcare company.

How big is shoplifting for your stores right now?

There are certain parts of the country that are doing worse than others, but it has no material impact on our financial results. However, it is a safety issue for our employees. So one of the things we’ve done is we’ve invested more in security.

What are the consequences of the labor shortage for the company? Do you find it difficult to hire people?

It’s a big challenge for us. We have increased our wages. Over the past year, we have been paying pharmacy bonuses. We’ve done big recruiting days. But it’s a constant balance and a constant fight.

You said you would raise your minimum wage to $15 an hour by this summer. Is that correct?

We introduced it in phases. So we’ve rolled it out over time and I don’t know if it’s enough. We’re obviously moderating wages in different parts of the country and I’m going to continue to evaluate it.

What do you think are the most effective ways we can reduce health care costs for ordinary Americans? And what is the role of your company in this?

There are a few things. One is that there is the place of concern. Our role is to provide an alternative care location, either in our retail locations or at home with virtual connections. We’re entering the primary care space because we believe that primary care really does have a significant impact on healthcare costs.

And I’m pretty passionate about the fact that the head is attached to the body, and most people experience behavioral issues when they experience physical health issues. We are only concerned with physical health. We’re not in the behavioral health part, and I think we can do more.

“I think this is going to be an endemic thing, and I think we’re going to see these annual shootings.” —Karen Lynch

When it comes to insurance, many people would say that more public options would go a long way in reducing health care costs. Why is it that CVS is so opposed to things like Medicare for All, the public option, and other public health insurance plans?

For example, let’s look at Medicare Advantage. That is a program that works and is led by the private sector, even though it is funded by the government. With the private sector, you have more opportunities for competition and opportunities for innovation and more opportunities to create new paradigm shifts in healthcare. And that’s why we were against these public options, because we really believe that the private sector will continue to innovate.

But we’ve had decades of private control and competition, and it hasn’t given us the desired result. Why should people believe that more of the same will lead to a different result?

Why do you think the government would be better at it? Just look at the number of government programs that are not working as effectively as they should.

Your pharmacists played an important role in putting needles in the arms. If you do, how do you work to address vaccine skepticism, which is still pervasive in this country?

We have worked in the communities to train people. We’ve even put vans in communities and we’ve used all of our resources. When we started, we first placed the stores in these underserved communities, and about 40 percent of our vaccines are in those underserved communities. There is clearly more work to be done. It is education in all our parts. We’re doing our part. I know the government is doing its part. And I’ve also done it with a little stick behind the door with my own team, by doing a vaccine mandate.

We’re in the healthcare industry, and this is a public health problem, and we should be at the forefront of it. I don’t think vaccines are going away. I think this is going to be an endemic thing, and I think we’re going to see these annual shots. That will be part of a role we continue to play in keeping America healthy.

A jury ruled that CVS and other pharmacy chains were partly responsible for the opioid crisis. I know CVS is appealing, but when you look at that ruling, shouldn’t pharmacists have a responsibility to review and report suspicious prescriptions?

Our view and the historical view is that pharmacists are trained to carry out the prescriptions of doctors. Now, after all that stuff that’s happened, we’ve put controls in place so that the pharmacists mark those things that don’t look particularly good. So we’re doing it now. But they are not the doctors, and they are not the ones who prescribe. And we didn’t just do it on CVS. On the Aetna side, one of the most egregious things we saw was dentists. So one of the things that we put into our kind of policy was limiting the number of opiates that we would pay for dentists to use. The whole system is responsible.

We speak on January 6. How do you feel about the role of the company and your role as CEO in addressing political issues at this highly charged time?

You don’t want me to talk about politics. I do worry about it. I think there are certain points in time where I think CEOs need to step in, when they hit their company or their employees. And there are certain times when that’s none of our business. It’s a delicate balance. We need to make sure that your first interest is your colleagues, your customers and then your shareholders, and make sure you do what’s right for them.

Many companies have said they will no longer make political contributions directly or through PACs to members of Congress who voted against the certification of the 2020 presidential election. Where is CVS Health on that particular issue?

On that particular issue, we have made statements that we would not support certain politicians involved, and we have stood our ground.

Is there a reassessment of whether or not you want to contribute to Republicans or Democrats at all?

It’s something that weighs heavily on my head. As a company, there are certain things we advocate for and things we support. And I’ll be honest with you, this isn’t an easy one, and it’s something I’ve spent a lot of time working on with my government affairs team. We debate about it. I don’t think I have an answer for you. I’m trying again to take a really balanced approach and not do things that hurt the business.