Bur­dick pro­moted to CEO at Well­Care

Modern Healthcare - - NEWS MARKETS -

Who: Ken­neth Bur­dick, 56

New role: CEO of Well­Care Health Plans, ef­fec­tive Jan. 1. Well­Care, based in Tampa, Fla., is a pub­licly traded health in­surer that of­fers Medi­care, Med­i­caid and Oba­macare ex­change plans.

Pre­vi­ous roles: Bur­dick joined Well­Care last Jan­uary as pres­i­dent of na­tional health plans. He was pro­moted to pres­i­dent and COO in June. Prior to Well­Care, Bur­dick was CEO of Blue Cross and Blue Shield of Min­nesota, but he was pushed out after only a half-year on the job be­cause of in­ad­e­quate dis­clo­sure of “business ac­tiv­i­ties” and dif­fer­ences in lead­er­ship style, BCBS said at the time. He also worked at Unit­edHealth Group and Coven­try Health Care.

Well­Care’s fi­nan­cial is­sues: Profit de­clined 58% in the first nine months of 2014, even though rev­enue in­creased 35%, with high costs as­so­ci­ated with the sys­tem’s Med­i­caid mem­bers hurt­ing the bot­tom line. Ex­ec­u­tives re­cently said they have a “ways to go” to get their Med­i­caid business back to ex­pected profit mar­gins.

Bur­dick’s view go­ing for­ward: “I’m very op­ti­mistic about Well­Care’s mis­sion and di­rec­tion. We are mak­ing great progress on our strate­gic plan.”

Wall Street’s view: Well­Care now “has ex­pe­ri­enced hands in its two high­est ex­ec­u­tive po­si­tions,” one an­a­lyst said. An­drew Asher, a for­mer fi­nan­cial ex­ec­u­tive at Aetna and Coven­try, of­fi­cially took over as CFO in Novem­ber.

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