Dive Brief:
- Humana CEO Bruce Broussard will step down from his role after more than a decade leading the company, according to an announcement from the insurer Wednesday.
- Jim Rechtin, president and CEO of physician staffing firm Envision Healthcare, will become CEO in the latter half of 2024. Rechtin will formally join Humana as president and chief operating officer effective Jan. 8, when he’ll report to Broussard until assuming the CEO role.
- Before joining Envision, which filed for bankruptcy in the spring, Rechtin served as president of UnitedHealth Group’s OptumCare and held leadership roles at dialysis provider DaVita Medical Group.
Dive Insight:
Broussard joined Humana in 2011 and took on the CEO role two years later. He’ll stay on as a strategic adviser to the company into 2025, according to a statement. As chief executive, he oversaw Humana’s expansion beyond its insurer roots into a larger health services provider with its CenterWell segment.
The company has doubled down on care delivery, opening primary care clinics geared toward Medicare patients and launching its own in-home care program.
Humana’s CenterWell Senior Primary Care and its sister brand Conviva Care Center provide care for more than 272,000 seniors across 12 states in more than 250 centers, the payer said in August. It plans to add 30 to 50 new centers each year through 2025.
The company has also narrowed its insurance focus. Early this year, Humana announced it would exit the employer insurance business to concentrate on government-sponsored programs like Medicaid and Medicare.
The company is the second largest provider of Medicare Advantage plans by enrollment behind insurance giant UnitedHealthcare, according to data analysis by KFF. Humana raised its MA membership growth expectations after posting second quarter earnings this summer and now expects to add 825,000 beneficiaries in 2023.
Humana beat Wall Street expectations on earnings and revenue in the second quarter this year, reporting $959 million in profit that was up 38% year over year. The insurer will post financial results for the third quarter next month.
