Health Net is shuffling the duties of its executive team amid a string of disappointing earnings reports this year, including lower-than-expected third-quarter profits announced Tuesday.
The insurers board of directors announced that Jay Gellert, president and chief executive officer, will focus on strategy in a tough competitive and economic environment, effective immediately. James Woys, chief operating officer, will take over all operational matters, including Medicare, Medicaid and commercial business. It was also announced that Stephen Lynch, president of the Health Plan Division, will retire on Feb. 28.
Health Nets board is very concerned about the companys recent financial performance, Roger Greaves, chairman of Health Nets board of directors, said in a written statement. We believe that by refocusing management resources, we can address our challenges with greater intensity.
The Woodland Hills, Calif.-based insurer, which has about 6.7 million members, said higher than anticipated hospital and Medicare Advantage medical costs contributed to disappointing earnings, and to a lowered forecast for 2009. The company reported $18.5 million in profits in the third quarter, and a $14.6 million loss related to investment holdings. -- by Rebecca Vesely
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