The board of Health Net Inc. says it is realigning the company’s executive team and asking the president to focus on “how best to deploy the company’s assets in the current competitive and economic environment.”
Health Net, Woodland Hills, Calif., is reporting $18 million in net income for the third quarter on $3.8 billion in revenue, compared with a net loss of $104 million on $3.6 billion in revenue for the third quarter of 2007.
Total health plan enrollment held steady at about 3.7 million.
Health Net says Stephen Lynch, president of the health plans division, will retire Feb. 28, 2009.
James Woys, the chief operating officer, will assume responsibility for all operational and administrative company matters, according to the Health Net board.
Jay Gellert, the president and chief executive, will “focus his efforts on the company’s strategy,” the board says.
“Health Net’s board is very concerned about the company’s recent financial performance,” Health Net Chairman Roger Greaves says in a statement. “We believe that by refocusing management resources, we can address our challenges with greater intensity…. In light of the economic uncertainty surrounding our industry and the likelihood of public policy changes, we have directed Jay to focus all of his attention and considerable expertise on the company’s strategic direction.”