The insurtech is shaking up its leadership group, with co-founder and current CEO Mario Schlosser transitioning to President of Technology.
Oscar Health is handing the CEO reins to veteran healthcare leader Mark Bertolini as it continues to shore up its strategy for profitability, the company announced today.
Bertolini, who was formerly CEO of Aetna, will take over the role on April 3, with co-founder and current CEO Mark Schlosser moving to President of Technology, where he will lead product and engineering, focusing on Oscar's tech platform +Oscar.
Schlosser will continue as a member of the board, which will expand to include Bertolini.
"Oscar Health is an established challenger brand in the healthcare industry, pushing the boundaries of how insurance operates and delivers for members," Bertolini said in the press release. "I am proud to join the company at this pivotal time, and excited to cement Oscar's future as a leader in the industry."
During his tenure at Aetna, Bertolini established a reputation as a healthcare thought leader and led the payer from 2011 through its sale to CVS for $69 billion in 2018.
Most recently, Bertolini served as co-CEO of asset management firm Bridgewater Associates and in an advisory role to Oscar.
"I have worked closely with Mark in his role as a strategic advisor to Oscar for the past 18 months and it's become clear that we share a vision for the future of healthcare," Schlosser said. "By pairing my passion in tech with Mark's extensive expertise in building and scaling companies, we are well-positioned to continue to execute our strategy for profitability, set Oscar up for continued growth, and deliver enhanced value for our members and shareholders."
Oscar is hoping the hiring of Bertolini will accelerate it towards profitability, which has so far eluded the insurtech.
The company announced it suffered a net loss of $610 million for 2022 in its recent fourth quarter and full year earnings report, with revenue being offset by operating expenses.
Last year also saw Oscar lose a significant customer for +Oscar and the payer saying it will pause any new +Oscar deals through early 2024.
Insurtechs as a whole have struggled to achieve financial stability and 2023 could be telling for the future of several companies in the space.
Jay Asser is the contributing editor for strategy at HealthLeaders.
KEY TAKEAWAYS
Mark Bertolini will take over as CEO of Oscar Health, bringing with him a reputation for scaling payers and driving growth.
Co-founder and current CEO Mario Schlosser will become President of Technology as he turns his attention to +Oscar, the company's tech platform.
The leadership move comes as the company puts its focus on reaching profitability after facing financial challenges in 2022.