CVS Health has created a new chief pharmacy officer position to oversee the drugstore chain’s “omni channel pharmacy strategy” that includes an “enhanced version” of the company’s fast-growing HealthHub locations.
CVS said Prem Shah, who is 41 years old, has been named to the new role of chief pharmacy officer effective immediately. Shah and CVS executive Michelle Peluso, 50, will become co-presidents of CVS Health’s retail business, “with Peluso overseeing front-store strategy and operations,” the company said Thursday. Both will report to CVS president chief executive officer Karen Lynch.
Exiting the company to make way for the promotions is Neela Montgomery, who has been executive vice president and president, CVS Retail/Pharmacy, and “has decided to leave the company” by the end of this year, CVS said in its announcement.
The moves come as CVS Health rivals Walgreens Boots Alliance and Walmart push deeper into healthcare services, expanding available items in their stores and adding primary care services to their stores.
“Prem and Michelle are ideally suited for their new roles and will be instrumental to CVS Health as we continue to execute against our strategy of delivering an integrated health care experience centered around the consumer,” Lynch said.
The changes at CVS, which came about as part of the company’s “strategic review” of its retail business, will also include the rollout of some new and additional store formats. CVS said the formats are: “sites dedicated to offering primary care services; an enhanced version of HealthHUB locations with products and services designed for everyday health and wellness needs; and traditional CVS Pharmacy stores that provide prescription services and health, wellness, personal care and other convenient retail offerings.”
Already, CVS HealthHubs dedicate more than 20% of the store to health services that include new durable medical equipment, supplies and various new product and service combinations. CVS is adding thousands of new personal care items as well as additional services at its MinuteClinics in the health hub stores.