Wednesday, October 23, 2019

N.C. Blues CEO Scandal Offers Lessons on Transparency


In the wake of a scandal surrounding the news that Blue Cross and Blue Shield of North Carolina's CEO, Patrick Conway, M.D., was arrested in a drunken driving incident back in June, the insurer has officially called off its planned "strategic affiliation" with Cambia Health Solutions.
Experts tell AIS Health that the whole saga offers powerful lessons for other organizations about how not to handle a tricky public relations situation.
One major problem is the fact that members of the North Carolina Blues plan's board of directors opted to keep Conway's arrest under wraps when he reported it to them, says Lawrence J. Parnell, an associate professor of strategic public relations at George Washington University.
Conway told The Wall Street Journal in a September interview that when he informed the Blues insurer's board of the incident, lawyers recommended that he "not disclose anything publicly until the legal process was completed."
According to Parnell, the North Carolina Blues plan should have notified regulators and the public of the incident when it happened.
"When they didn't do that and allegedly advised him to not talk about it, it smacks of trying to cover something up," he says. "And in almost every case, the efforts to clean up or cover up something are as bad — if not worse — than the initial incident that you’re dealing with."
Indeed, for organizations in general, "the longer they wait to release the information, the harder it is to understand why they did it," says James Lukaszewski, a corporate executive consultant.

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