business

2 major health plans announce changes in executive staff

Aetna's CEO unveils his plans to retire as WellPoint's No. 3 point person is "terminated without cause" -- and without explanation.

By Emily Berry — Posted Nov. 11, 2010

Print  |   Email  |   Respond  |   Reprints  |   Like Facebook  |   Share Twitter  |   Tweet Linkedin

Ronald Williams, CEO and chair of Aetna, announced Oct. 19 that he is retiring from the country's third-largest health plan. Williams, 60, has led the company since 2006.

Aetna President Mark Bertolini will become CEO and is expected to be elected chair in April, when Williams' retirement will take effect. Williams will be executive chair until April, then serve as a consultant through February 2012 at a rate of $20,000 a month, according to company filings with the Securities and Exchange Commission.

Williams was among the highest-paid health plan CEOs. His compensation, including cash salary, incentive pay and stock options, was valued at $18 million in 2009.

Also on Oct. 19, the leadership at Indianapolis-based WellPoint changed.

WellPoint announced in an SEC filing that the company's third-highest-ranking executive, Dijuana K. Lewis, was "terminated without cause" from her position as president and CEO of the Comprehensive Health Solutions business unit and executive vice president of WellPoint.

WellPoint spokeswoman Kristin Binns said Samuel Nussbaum, MD, executive vice president for clinical health policy and chief medical officer, is heading up Lewis' division until a permanent replacement can be found.

Binns would not comment further about Lewis' departure.

An Oct. 27 article in the Indianapolis Business Journal quoted unnamed sources as saying Lewis objected to having some of her responsibilities shifted to another executive, and that her departure was a mutual decision.

Her compensation, including base salary, incentive pay and stock options, was $4.5 million in 2009. WellPoint also paid $167,000 in relocation costs to move Lewis to Indianapolis. Her severance package, as described in SEC filings, is worth more than $3 million.

Valerie Fredrickson, a human resources consultant in Menlo Park, Calif., said she has no inside knowledge of the situation between WellPoint and Lewis, but that it is somewhat unusual for a company to release a statement like WellPoint's, specifying that Lewis was terminated "without cause."

"Without cause" is a legal term that could be used following negotiations between attorneys for a company and a departing employee. It does not signal an amicable split, she said.

Back to top


ADVERTISEMENT

ADVERTISE HERE


Featured
Read story

Confronting bias against obese patients

Medical educators are starting to raise awareness about how weight-related stigma can impair patient-physician communication and the treatment of obesity. Read story


Read story

Goodbye

American Medical News is ceasing publication after 55 years of serving physicians by keeping them informed of their rapidly changing profession. Read story


Read story

Policing medical practice employees after work

Doctors can try to regulate staff actions outside the office, but they must watch what they try to stamp out and how they do it. Read story


Read story

Diabetes prevention: Set on a course for lifestyle change

The YMCA's evidence-based program is helping prediabetic patients eat right, get active and lose weight. Read story


Read story

Medicaid's muddled preventive care picture

The health system reform law promises no-cost coverage of a lengthy list of screenings and other prevention services, but some beneficiaries still might miss out. Read story


Read story

How to get tax breaks for your medical practice

Federal, state and local governments offer doctors incentives because practices are recognized as economic engines. But physicians must know how and where to find them. Read story


Read story

Advance pay ACOs: A down payment on Medicare's future

Accountable care organizations that pay doctors up-front bring practice improvements, but it's unclear yet if program actuaries will see a return on investment. Read story


Read story

Physician liability: Your team, your legal risk

When health care team members drop the ball, it's often doctors who end up in court. How can physicians improve such care and avoid risks? Read story