Magellan Health promoted Derrick Duke to chief executive officer as the insurer and behavioral health provider develops and executes a new operational strategy, the company announced Friday.
Duke rises to the top job after six months as chief operating officer and chief financial officer. Centene acquired Magellan Health for $2.2 billion in January. Duke succeeds Ken Fasola, who accepted a role leading Centene's healthcare enterprises non-insurance business in April. The same month, Centene expanded its office of the CEO to include Fasola. Duke will report to Fasola.
Magellan didn't immediately respond to an interview request.
In June, Centene announced it was selling Magellan Health's pharmacy platform for $1.35 billion to pharmacy benefit manager Prime Therapeutics. Centene is exiting the PBM space after reserving $1.25 billion to settle allegations from at least nine states that it overcharged Medicaid for prescription drugs. The divestiture is expected to close in the fourth quarter.
Centene described the MagellanRx sale as part of a "value creation plan" announced in November. Activist hedge fund Politan Capital Management pushed the company to boost profits through divestitures and leadership changes after investing $900 million in the insurer.
Duke joined Magellan Health as chief risk officer in 2020 after holding executive positions at HealthMarkets and National Health Insurance. He earned a bachelor's degree in finance from Hardin-Simmons University in Abilene, Texas, and a master of business administration from the University of Texas at Arlington.