Bruce Broussard will give way to Jim Rechtin in the latter half of 2024.
Humana has already mapped out its succession plan with longtime CEO Bruce Broussard set to step down in the second half of 2024, the company announced.
After spending more than a decade at the helm of the payer, Broussard will end his tenure and hand the reins to Jim Rechtin, president and CEO of Envision Healthcare.
The transition to Rechtin reflects the direction Humana is heading, with the company expanding beyond only offering health insurance and becoming an integrated model. In 2022, the company restructured into two business units: Insurance Services and CenterWell. The latter includes healthcare services, such as its primary care clinics.
Along with its sister brand Conviva Care Enter, CenterWell Senior Primary Care delivers care to more than 272,000 members in more than 250 centers across 12 states. Humana plans to add an additional 30 to 50 new centers per year through 2025.
Rechtin brings experience in provider settings from his previous role as president of UnitedHealth Group's OptumCare and from multiple leadership positions with DaVita Medical Group.
"Jim has worked closely with clinicians in many different care settings," Broussard said in the news release. "That experience will help support our growing clinical footprint and continuing evolution as a health care company and the important work we do in driving health outcomes for our customers."
Kurt Hilzinger, chairman of the Humana Board, said: "[Rechtin's] first-hand experience leading through challenges and opportunities of a changing health care services continuum will help accelerate our integrated care strategy at pace."
In its announcement, Humana also said Rechtin has "a deep understanding of Medicare Advantage," which will be key as the payer continues to hone in on that side of the business. Humana is exiting the commercial health insurance market and focusing on growing its offerings in Medicare Advantage (MA), where it has the second-largest market share behind only UnitedHealth Group. Under Broussard, the company tripled its MA membership to more than five million.
Broussard, who joined Humana in 2011 and took over as CEO in 2013, will remain as a strategic advisor to the company into 2025. Until Rechtin steps in for Broussard, he will act as the president and chief operating officer, effective January 8, 2024.
Jay Asser is the contributing editor for strategy at HealthLeaders.
KEY TAKEAWAYS
Jim Rechtin will take over as CEO of Humana after Bruce Broussard steps down from the role in 2024 as part of a "multi-year succession plan."
Rechtin, who will serve as president and chief operating officer from January until becoming CEO, brings experience in provider settings to the company as it transitions to expanding its healthcare services.