Athenahealth Appoints Former CVS Executive Tom Cowhey as New CFO

Athenahealth, a leading health IT firm and electronic health record vendor, has announced the appointment of Tom Cowhey as its new Chief Financial Officer. The move comes as part of a series of leadership changes in the healthcare industry, reflecting the dynamic nature of the sector and its ongoing financial challenges.

Cowhey's Transition from CVS to Athenahealth

Tom Cowhey, who previously served as Executive Vice President and CFO at CVS Health, will assume his new role at Athenahealth on June 9. This appointment follows Cowhey's departure from CVS, where he had been permanent CFO since early last year. His extensive experience in the healthcare sector, including roles at Surgery Partners and Aetna, positions him well for his new responsibilities at Athenahealth.

The transition marks a significant change for Athenahealth, which has been operating with an interim finance chief since late last year when previous CFO John Hofmann stepped down. The company's decision to bring in Cowhey underscores its commitment to strong financial leadership in an increasingly competitive health IT landscape.

CVS Health's Recent Financial Performance and Strategy Shift

Cowhey's move comes at a time of both challenges and opportunities for CVS Health. The healthcare giant faced significant financial headwinds in the past year, with profits nearly halving due to high medical costs at its insurance arm, Aetna. However, the company has shown signs of recovery, reporting a 60% increase in net profit year-over-year in the first quarter of this year, exceeding investor expectations.

In a strategic shift, CVS has announced its decision to discontinue offering health plans on the Affordable Care Act exchanges starting next year. This move is part of the company's efforts to refocus its resources on other business lines, potentially signaling a broader restructuring of its operations.

Implications for the Healthcare IT Sector

The appointment of Cowhey at Athenahealth highlights the increasing importance of financial expertise in the health IT sector. As companies in this space navigate complex regulatory environments, technological advancements, and changing market dynamics, strong financial leadership becomes crucial for sustainable growth and innovation.

Athenahealth's decision to bring in a CFO with extensive experience in both traditional healthcare and IT sectors suggests a strategic focus on bridging these two areas. This move could potentially lead to new financial strategies and business models in the health IT industry, as companies seek to adapt to the evolving healthcare landscape.