Issue link: https://beckershealthcare.uberflip.com/i/1299034
43 WOMEN'S LEADERSHIP 43 CEO / STRATEGY Who leads CVS Health: 12 things to know By Katie Adams C VS Health is a pharmacy and healthcare company with about 10,000 stores in its network. e Woonsocket, R.I.-based company offers pharmacy ser- vices, in-store health clinics and retail products. In 2015, CVS Health launched a digital innovation lab, which develops devices and apps to advance the digital transformation of healthcare. Here are 12 things to know about the company's leadership team. President and CEO: Larry Merlo • Mr. Merlo joined CVS in 1990 when it acquired Peoples Drug, an Alexandria, Va.-based pharmacy chain for which he was working. • His positions at the company include senior vice president of stores (January 1990 to March 1998), executive vice president of stores (March 1998 to January 2007), executive vice president of CVS Caremark (January 2007 to May 2010), president of CVS Pharmacy (January 2007 to January 2010), and COO (May 2010 to March 2011). He became president and CEO in 2011. • Mr. Merlo serves on the board of America's Health Insurance Plans and the board of trustees for the University of Pittsburgh, his alma mater. He is also a member of the Business Roundtable Executive Committee. • In 2019, Mr. Merlo received $36.5 million in total compensation, according to an SEC filing. Executive Vice President and COO: Jonathan Roberts • Mr. Roberts was appointed COO in March 2017. Before that, he served in various leadership positions within CVS, most nota- bly as the president of CVS Caremark, the company's pharmacy benefit management business. • As COO, Mr. Roberts leads operations for CVS' Pharmacy, MinuteClinic and Omnicare divisions. He also serves as the head of information technology for the company. • He serves as chair of Red Oak Sourcing's board of directors, a member of Rhode Island Airport Corp.'s board of directors and a member of the National Association of Chain Drug Stores' board of directors and executive committee. • In 2019, Mr. Roberts received just above $15 million in total compensation, according to ExecPay. Executive Vice President and CFO: Eva Boratto • Ms. Boratto was appointed CFO in October 2018, according to her LinkedIn profile. She joined the company in 2010 as its se- nior vice president for pharmacy benefit management finance and went on to serve as its executive vice president, controller and chief accounting officer, and senior vice president and CAO. • Before joining CVS Health, Ms. Boratto held various leadership positions at Merck, an international drugmaker, including serv- ing as its vice president and U.S. market finance leader. • As CFO, Ms. Boratto manages CVS Health's accounting and fi- nancial reporting, investor relations, treasury and capital plan- ning, mergers and acquisitions, investments, risk management, taxes, budgeting, and procurement. • In 2019, Ms. Borratto received $9.6 million in total compensa- tion, according to ExecPay. n Former Hacienda HealthCare CEO, CFO face felony charges By Ayla Ellison P hoenix-based Hacienda HealthCare has entered into an $11 million civil settlement with the Arizona attor- ney general's office, and two of the company's former executives have been indicted in an elaborate fraud case. Hacienda HealthCare's former CEO William Timmons and former CFO Joseph O'Malley face multiple felony charges for their alleged roles in a scheme that involved misallocating funds from the Arizona Department of Economic Security's division of developmental disabilities and the Arizona Health Care Cost Containment System. The former executives al- legedly manipulated costs to avoid repayments of state funds and used overpayments to inflate salaries and bonuses. The indictment further alleges that Mr. Timmons directed the fraudulent billing of health insurance companies for uses of Synagis, an injection given once a month through- out respiratory syncytial virus season. Mr. Timmons alleged- ly told staff not to discard Synagis vials after a single use and to administer the remaining medication to patients. Health insurance companies were still billed for the entire cost of a vial, according to the attorney general's office. Mr. Timmons served as Hacienda's CEO from July 1989 to January 2019, and Mr. O'Malley served as the compa- ny's CFO from 2013 to 2019. The alleged fraud scheme occurred from 2013 until Mr. Timmons resigned in January 2019, according to the attorney general's office. The attorney general's office announced the charges against the two former executives on Sept. 2, the same day it released details on a civil settlement with Hacienda HealthCare. Hacienda HealthCare agreed to pay the state more than $11 million to resolve allegations that it engaged in im- proper billing, inflated reported expenses and misallo- cated direct and indirect costs from 2013 to 2018. The allegedly fraudulent activity resulted in Hacienda Health- Care receiving at least $10.9 million in overpayments from the Arizona Health Care Cost Containment System. n