Cambia Health Solutions and Blue Cross and Blue Shield of North Carolina have put their planned affiliation on ice after local news reports last week revealed the North Carolina insurer's CEO had been charged in an alleged alcohol-related car accident.
Cambia's leadership said they were "deeply troubled" by the situation involving Blue Cross of North Carolina CEO Dr. Patrick Conway, who was charged with driving while impaired and misdemeanor child abuse after the June accident. The companies were slated to combine in a strategic affiliation in which Conway would become CEO of both not-for-profit companies.
"Transparency and integrity of leadership are imperative to Cambia management and our board. We have decided to temporarily pause the proceedings toward the strategic affiliation with BCNC until all the facts are known and the legal process concludes," Cambia CEO Mark Ganz and board chair Mike Koppel wrote in a joint statement Tuesday.
News surfaced last week that Conway had been put on temporary leave following the arrest but was reinstated after a board review. The state's insurance commissioner has urged Blue Cross of North Carolina to replace Conway with an interim leader until the charges are resolved.
"Blue Cross NC is committed to focusing on its customers, employees and the North Carolina communities it serves," a company spokeswoman said in a statement.