Blue Cross CEO steps down amid pressure from insurance commissioner, board of trustees

Gaston Gazette (Gastonia, NC)

The head of North Carolina's largest health insurance provider stepped down Thursday, hours after the state's insurance commissioner called for his resignation during a press conference at The Gaston Gazette.

Blue Cross and Blue Shield of North Carolina issued a statement late Thursday night, saying that new details from Patrick Conway's June 22 arrest caused them to "reexamine the situation."

"Immediately following Dr. Conway's accident, the BlueCross NC board of trustees began reviewing and monitoring the situation, with the help of outside counsel and other experts," the statement said. "As a part of its work, the specially convened committee of the board reviewed public records and officer affidavits regarding the accident and arrest. However, new details have come to light, particularly notes from the arresting officers and contents from their investigative files of which the board was unaware. Based on this, the board of trustees gathered today to reexamine the situation and determine a course of action.

"The BlueCross NC board of trustees has asked Dr. Conway for his resignation. Dr. Conway accepted the request and has issued his resignation effective immediately."

When Conway was hired to the position in October 2017, he received a $1.05 million compensation package, according to an article in the Winston-Salem Journal.

Conway was arrested in Archdale after his Cadillac Escalade collided with a tractor-trailer.

Drivers reported him driving erratically and changing lanes across Interstate 85 South near mile marker 114, according to an Archdale Police report from the incident. Conway had his two young daughters in the car, according to the report.

Police reported observing a strong odor of alcohol on his breath, one he reportedly tried to mask by eating breath mints after the incident.

On the ride to jail, Conway told an officer he "had a choice, you could have let me go. You don't know who I am. I am a doctor, a CO of a company. I'll call Governor (Roy) Cooper and get you in trouble," according to the report.

Insurance Commissioner Mike Causey said Wednesday he wasn't aware of the arrest until last week, and hadn't read the police report until Tuesday.

"There's been a significant breakdown in the corporate governance at Blue Cross and Blue Shield of North Carolina," Causey said. "The efforts by the board of directors to hide the arrest of their CEO for drunk driving and child neglect is disturbing."

Conway went on leave after the incident and underwent a 30-day inpatient program for substance abuse, but has since returned to his position, according to an article in The Wall Street Journal.

Causey said the board misrepresented the nature of the incident when he found out about it last week.

Blue Cross Chief Operating Officer Gerald Petkau will take over as CEO, effective immediately.

"We are confident that the transition will be smooth, and that Gerald Petkau will continue to lead the fight to improve the quality of health services, lower costs, and deliver an overall exceptional experience for our members," read the statement from the board of trustees.

You can reach Adam Lawson at 704-869-1842 or on Twitter @GazetteLawson.

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Visit Gaston Gazette, Gastonia, N.C. at www.gastongazette.com

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