MM Curator summary
[MM Curator Summary]: The insurance giant is making big moves in a recent re-org and efforts to cut $1B in costs.
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Humana said it will restructure its organization into two distinct units as it looks to simplify the company’s overall organization, executives told investors Wednesday.
The move will slim the firm down into separate units it will call Insurance Services and CenterWell, building on Humana’s recent acquisition of Kindred amid the push for care at home.
To lead this new segment, Humana has launched an executive search for president of insurance and enterprise services.
The realignment will take effect in 2023 and Humana expects to name a new leader by the end of the year.
Separating into two units will create greater collaboration, a more agile company and will expand the scope of authority for Humana’s leaders, CEO Bruce Broussard said on Wednesday’s second-quarter earnings call.
“We believe this simpler structure will create greater collaboration across our insurance and CenterWell business, and will accelerate work that is underway to centralize and integrate operations within the organization,” Broussard said.
The new Insurance Services unit will be made up of the businesses that sit within the current retail, group and specialty segments while CenterWell will include the current healthcare services segment, Broussard said.
For the new role, Humana is looking for candidates with deep experience in running complex organizations.
“A key focus of this role will be to help us continue to simplify our structure to make us more agile, and to further improve our ability to increase synergies between our businesses and improve outcomes for our customers,” Broussard said.
In other executive changes, Humana said Alan Wheatley, retail segment president, will transition from his role at the end of the year. Humana will begin a search for a new leader with a broader role. Wheatley will serve as a strategic advisor over the next year to help with the transition.
The reorganization follows Humana’s previous announcement in February that it would look to cut $1 billion in costs to reinvest back into the business.