Alphonso O’Neil-White to step down as head of BlueCross BlueShield parent [The Buffalo News, N.Y.]
By Jonathan Epstein, The Buffalo News, N.Y. | |
McClatchy-Tribune Information Services |
He is not leaving immediately, however, but will stay on until a new CEO is named, which will "allow for a seamless transition," according to a news release. He also will continue to serve this year as board chairman of the
In the meantime, the decision triggered
"We have orderly succession plans that we have in place that we have developed in conjunction with Alphonso over the course of years," said Chairman
The board established a transition committee of company executives and directors, while hiring national search firm Russell Reynolds Associates of
"The board has committed to a deliberate, thorough process, and they have not given themselves a time frame," O'Neil-White said. "They've asked me to help make sure that the CEO gets settled and oriented, so it won't be an abrupt change. Our customers and partners and providers won't see any difference in what we're doing."
Hook said O'Neil-White's decision to retire is personal and not because of any disagreements with the board. And he said the company is not likely to change direction significantly, aside from continuing to adapt to federal health care reforms that are affecting the entire industry.
"I think that the mission and vision of the company will remain as a company that serves the health care needs of the community," Hook said. "The strategy will not so much evolve because of Alphonso's transition. It'll evolve out of the needs of the industry."
While health care reform is transforming the industry and presenting major new challenges to insurers and executives, O'Neil-White said that was "more coincidence than anything else," and was not the primary reason for his decision. He also stressed, both in a news release and in an emailed letter to all 1,800 employees, that he is in "excellent health."
Rather, he referred to retirement as "more of a journey than a destination," and said he's been thinking more and more about it over time. "There is really no good or bad time for these things. You just walk up to it when you're ready."
More recently, he's also noticed as his fellow CEOs at other Blues plans, including
In fact, less than a handful of the CEOs among the 38 Blues plans nationwide have been at the helm for as long as O'Neil-White.
"We've seen a change of the guard within the system, a lot of my friends and peers and colleagues," he said. "That makes you think, because there's generally a lot of conversation around retiring and what people are going to do and aren't going to do. That was the motivating factor."
O'Neil-White, who will turn 64 in May, is the longest-serving CEO in the company's recent history. He has been with the company for 17 years, since joining as senior vice president and general counsel in 1996 and then taking a promotion to interim CEO in 2003.
He is credited with turning the company around after years of poor financial performance and tightened oversight by state regulators, restoring it to a position of financial strength, higher and appropriate reserve levels, and continued leadership of the market.
Today,
"I'm leaving the company at a good time in its evolution," he said. "It's a strong company, a vibrant company. We have a strong balance sheet. Our cash flows are robust. We've been consistently profitable over the term of my leadership. I'm leaving the company in good stead. I think that's an achievement."
He rejects criticism from some observers of the company that
And he said the company's labor dispute during union negotiations, which led to a lockout of several hundred workers, resulted in a successful outcome.
"Nobody wins in a labor dispute like that," he said. "We went into negotiations trying to get the company positioned to deal with a new reality in the marketplace, and we said that from the beginning. We ended up with a settlement that both sides thought they could live with."
O'Neil-White also retires as one of the highest-ranking minority executives in
However, his impact on the
"I'm also very proud of this company's commitment to the community," O'Neil-White said. "I think the board has expressed a continuing commitment to improving our community."
Prior to joining
"We want to find the next great leader for the company," Hook said. "We're looking forward to identifying that person and having Alphonso transition with them so the company can be successful in the future."
email: [email protected]
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