Health fund boss pulls pin
OUTGOING Medibank managing director George Savvides says he will be open to taking up new leadership roles when he steps down next year.
The nation’s biggest health insurer surprised the market yesterday by announcing its veteran chief would leave 15 months ahead of his anticipated retirement date.
The announcement was made at Medibank’s annual meeting in Melbourne yesterday – the first since its $5.7 billion government float in October last year.
Mr Savvides will leave Medibank in March after more than 14 years in the top job.
“I haven’t given myself a template for the future but I’ve lived and breathed healthcare all my career,” he said.
“There are lots of opportunities I think.”
Mr Savvides has been a non-executive independent director at New Zealand retirement home operator Ryman Healthcare since early 2013.
Medibank’s board formally reviews its succession planning every six months although Mr Savvides said he had only made his decision on Tuesday.
Mr Savvides will miss out on part of his long-term incentive pay.
Analysts expressed surprise at the early exit.
“An early departure tends to raise more questions than answers,” said one analyst at a major investment bank, who asked not to be named.
“No one thought George would be there in two years’ time but they (Medibank) are not even one year into the IPO (initial public offer).”
Mr Savvides took the helm in 2001 after Medibank had suffered a $175 million loss on $2 billion in revenue.
It posted a $285 million profit on $6.6 billion in revenue in the year to June.
Mr Savvides has locked horns with Calvary Health Care and the Australian Medical Association as it moved to negotiate new contracts with private hospital groups.
Yesterday he defended his approach, saying 150 agreements had been struck with hospitals and healthcare providers.
Chairman Elizabeth Alexander said Mr Savvides would leave Medibank with a strong balance sheet.
Medibank shares fell 2.4 per cent to $2.49 yesterday.