Reprinted from HEALTH PLAN WEEK, the most reliable source of
objective business, financial and regulatory news of the health insurance
industry.
By Judy
Packer Tursman, Senior Reporter
August 21, 2017 Volume 27 Issue 29
After years of preparation, UnitedHealth Group
recently announced a CEO change. David Wichmann, president of the nation’s
largest health insurer since 2014, will become CEO and a director of the
company effective Sept. 1. On that date, Stephen Hemsley, the current CEO, will
become executive chairman of the board of directors, a newly created post, and
Richard Burke, the current board chairman, will become “lead independent
director.”
In its Aug. 16 press release, UnitedHealth Group
said the changes “are designed to ensure continuity as the company continues to
grow and evolve.” Hemsley, 65, said this is “the right time for this transition
to take place” given that the company “is performing strongly and has a
positive outlook” for the future. Hemsley said Wichmann, 54, has worked nearly
two decades for UnitedHealth and has “deep expertise” in critical areas,
“especially growth-oriented technology, operations and global markets.”
Credit Suisse analyst Scott Fidel said
UnitedHealth has been “methodically preparing” for the leadership transition
for years and there was never any doubt that Wichmann would become the next
CEO. “The only real question was when UnitedHealth would decide to make the
change,” Fidel said in an Aug. 16 note. “From a timing perspective, United is
making this announcement from a position of strength; its operations are highly
stable, the company is growing robustly, and the overall financial profile is
in pristine condition.”
On July 18, UnitedHealth reported
better-than-anticipated profits for the quarter ended June 30 (HPW
7/24/17, p. 3). Since Hemsley became CEO in November 2006, UnitedHealth’s
value has grown remarkably, Fidel said. “The fact that Hemsley plans to remain
heavily engaged in the company’s strategy for years to come as executive
chairman will likely be very well received by investors,” he said.
Wichmann joined UnitedHealth in 1998 and served
as chief financial officer from 2011 to mid-2016.
See UnitedHealth’s announcement at http://tinyurl.com/yb6fu9ua.
https://aishealth.com/archive/nhpw082117-04?utm_source=Real%20Magnet&utm_medium=email&utm_campaign=116648789
No comments:
Post a Comment