Athenahealth Appoints Former CVS Health CFO Tom Cowhey as New Finance Chief

Athenahealth, a leading health IT firm and electronic health record vendor, has announced the appointment of Tom Cowhey as its new Chief Financial Officer, effective June 9. Cowhey, who previously served as Executive Vice President and CFO at CVS Health, brings a wealth of experience in healthcare finance to his new role.

Leadership Transition at Athenahealth

The appointment comes after the departure of John Hofmann, Athenahealth's previous CFO, who stepped down late last year. Since Hofmann's departure, the company has been operating with an interim finance chief while conducting a search for a permanent replacement.

Cowhey's extensive background in healthcare finance makes him a strategic addition to Athenahealth's leadership team. Prior to his tenure at CVS Health, he held the position of CFO at Surgery Partners, an ambulatory surgical care firm. He also boasts leadership experience at Aetna before its acquisition by CVS.

Impact on CVS Health

Cowhey's move to Athenahealth follows a series of leadership changes at CVS Health. The healthcare giant has been navigating a challenging financial landscape, with profits nearly halved last year due to high medical costs affecting its insurance arm, Aetna.

Despite these challenges, CVS Health showed signs of recovery in the first quarter of this year, reporting a 60% increase in net profit year over year and surpassing investor expectations on both earnings and revenue. The company has also announced plans to discontinue offering health plans on the Affordable Care Act exchanges next year, aiming to refocus its efforts on other business lines.

Industry Implications

This high-profile executive move underscores the ongoing competition for top talent in the healthcare and health IT sectors. As companies like Athenahealth and CVS Health continue to evolve their strategies in response to market pressures and opportunities, the expertise of seasoned finance leaders like Cowhey becomes increasingly valuable.

The appointment also highlights the interconnectedness of various segments within the healthcare industry, as executives move between providers, insurers, and health IT companies, bringing with them diverse perspectives and experiences.