CVS Health has turned in a better than anticipated second quarter financial report. But the analysts say that the health care giant was hurt by pricing pressures at drugstores and rising medical costs that hit the health insurance side of the ledger.
The company has also agreed to a nearly 500 million dollar restructuring surcharge. The company said that the restructuring was needed to improve efficiency. As part of that plan, the company announced just this week that it was cutting five thousand management jobs nationwide. No customer facing positions are part of the restructuring.
The company said that its operating income dropped by 20 percent for its health insurance division.
Officials also say the drugstore division saw its income fall seventeen percent. Analysts says a lot of that had to do with a fewer Covid testing samples as well as fewer vaccinations.
Net income dropped to one point 9 billion dollars. Total revenues grew by ten percent to almost 89 billion dollars.
The overall bottom line beat analysts' projections.
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