(Reuters) – CVS Health announced on Friday that it reduced bonuses for some employees due to low profit levels last year, as a number of health care conglomerate with multiple expenses is brought into its Medicare plans.
“We have not fulfilled our financial goals in 2024, and this is reflected in our corporate bonus,” said Reuters representative in a statement.
The conglomerate faced the more pronounced influence of growing costs because he enrolled in the largest number of new members in Medicare plans for people over 65, or those who are disabled.
His health job was injured by increased use of medical services, changing the quality and payment of bonuses for his plans for Medicara and the increase in sick members who were registered in their Medicaid plans for people with lower income.
In October, CVS replaced executive director Karen Lynch with Veteran David Joyner, after facing the investor pressure, including activist Glenview Capital, to improve his standing stock price.
The company also set the cost of reducing costs and in November has appointed a new insurance head as part of Joyner’s efforts to turn the company.
Earlier this month, the CVS defeated the Wall Street assessment for the profit in the fourth quarter and provided an annual forecast that has largely fulfilled her expectations, hint at improving performance in her first quarter under the new executive director.
(Reporting Christy Santhosh in Bengalur; Mounting Shilpi Majumdar)
