Humana Inc. (NYSE: HUM) CEO Bruce Brousard will step down at the end of 2024 and be replaced by incoming COO and President Jim Rechtin.
Mr. Rechtin joins Humana from Envision Healthcare, where he currently serves as President and CEO. He will transition to the COO role at the insurance giant on January 8, 2024, and will take over the reins after Broussard’s retirement.
“The Board of Directors has worked diligently to find the right leader who can lead Humana into its next phase of growth and transformation,” Humana Board Chairman Kurt Hilzinger said in a statement. “Jim brings a powerful combination of operational, industry and CEO expertise. His first-hand experience navigating the challenges and opportunities of a changing healthcare service continuity will help accelerate our integrated healthcare strategy. I guess.”
Prior to joining Envision, Mr. Rechtin was President of OptumCare, a subsidiary of UnitedHealth Group (NYSE: UNH) and a leading home health and hospice provider. He has more than 22 years of experience in value-based health care and payment models, including Medicare Advantage, according to a Humana press release.
Humana is the second-largest operator of Medicare Advantage plans, accounting for 18% of the market, according to the Kaiser Family Foundation. The company also has the highest number of plans participating in the hospice component of the value-based insurance design model demonstration.
Kaiser reports that more than 30 million seniors are currently enrolled in Medicare Advantage, nearly half of the entire Medicare population.
Broussard’s departure has been “long planned,” according to a Humana press release.
He joined the company in 2011 and became CEO in 2013. During his tenure, Humana not only expanded as a payer, but he also built a huge presence in the provider space, including the home health division, Centerwell.
Humana took a major step into the home health care space in 2018 by acquiring a 40% stake in Kindred at Home. Kindred at Home was the largest and second largest provider of home health care services in the United States by market share as of 2020. Hospice providers, according to LexisNexis.
Private equity firms Welsh Carson Anderson & Stowe and TPG Capital will own the remaining 60% until 2021, after which Humana will acquire 100% ownership of Kindred at Home in a $5.7 billion deal. obtained.
Last year, Humana sold a 60% stake in Kindred’s hospice and personal care business to private equity firm Clayton, Dubilier & Rice (CDR) for $2.8 billion. Humana kept his remaining 40%.
CDR later rebranded Kindred’s former hospice division to Gentiva.
“It is an incredible honor to lead this company and its team of employees,” Broussard said in a statement. “We look forward to partnering with Jim as we work to make this a seamless transition in the coming months. He brings a collaborative, thoughtful and innovative leadership style to our organization. A natural fit for our current and future culture. In addition, Jim has worked closely with clinicians in a variety of medical settings. This experience will help us expand our clinical footprint and continue to grow as a healthcare company. It helps us support our evolution and the important work that drives health outcomes for our customers.”
