Glenview Capital to Discuss CVS Health Strategies

Shares of CVS Health rose nearly 3% after reports that Glenview Capital Management, a significant shareholder, planned to meet with CVS executives to discuss potential improvements for the struggling healthcare company. Glenview, which holds approximately $700 million in CVS stock, aims to enhance the company's operations, governance, and culture amid ongoing financial difficulties, including a 23% drop in market capitalization this year. CVS has faced challenges due to higher expenses and lower reimbursements, leading to a $2 billion cost-cutting plan and recent layoffs. The company, which also owns Aetna, has seen its stock decline as it cut full-year earnings guidance for three consecutive quarters. Glenview's involvement may signal the start of an activist push to change CVS's trajectory, as it has increased its stake in the company significantly. While CVS maintains that it regularly engages with the investment community, specifics of Glenview's proposals remain undisclosed.