Herzlinger resigns WellCare post, trades jabs with insurer
Regina Herzlinger resigned as a director for WellCare Health Plans after the Tampa, Fla., managed-care company said it would not nominate her to remain on the board. Herzlinger, a Harvard Business School professor, in her resignation letter, charged some board members conspired to remove her as a director and said the failure to nominate her for another year went against shareholders’ interests. She argued the company faced serious challenges, citing weak operations in recent months; recent CMS sanctions, now lifted; and turnover and limited tenure among WellCare’s accounting staff. WellCare, in a Securities and Exchange Commission filing, said it strongly disagreed with Herzlinger and called her claims unsupported. The company’s response argued Herzlinger mischaracterized facts and motive and made erroneous conclusions.