Health systems, virtual care companies, and health plans are dealing with important moves at the top.
From leaders stepping down at organizations to stepping away completely from the profession, healthcare is experiencing significant shake-up at the highest level of the C-suite.
As hospitals and payers plan for sustainability, the result is often a shift in leadership direction, while many leaders are choosing to call it a career and put succession plans in motion.
After 2023 saw 146 CEO changes at hospitals and health systems, which marked a 42% increase from 2022, more turnover is expected through the end of this year.
Here’s a look at three recent noteworthy CEO moves:
Teladoc Health
Jason Gorevic, who has been CEO since 2009, is departing the virtual care company effective immediately, Teladoc’s board of directors announced.
The change comes as the company looks to weather financial storms, including a concerning drop in stock and scaled-back forecasts. In 2022, Teladoc experienced a historic net loss of $13.7 billion, mostly due to the dwindling value of its acquisition of Livongo.
Teladoc CFO Mala Murthy will step into the vacated role while the board searches for Gorevic’s permanent successor.
“We are confident that this leadership transition will position the company for long-term success and value creation,” David Snow, Jr., chairman of the Teladoc board, said in a statement.
Banner Health
Following 24 years at the helm of the Phoenix-based health system, CEO Peter Fine will retire, making way for president Amy Perry.
Fine will continue as CEO emeritus through January 2025 while also stepping down from the board as the operator marches forward with a fresh face.
Perry previously served as chief operating officer after joining Banner in 2021 and played a vital role in leading the system during the COVID-19 pandemic and the aftermath, according to the news release.
She will add a “technology-forward, people-centered approach” to the position, board chair Anne Mariucci said in the announcement.
L.A. Care Health Plan
The country’s largest publicly operated health plan will see its CEO John Baackes retire at the end of the year, the payer announced.
Baackes held the role for the past nine years and will now closely work with L.A. Care’s board of governors to search for his successor. The health plan is looking for a “dynamic leaders who will help carry on his impactful legacy and blaze new trails for the agency,” according to the news release.
During his tenure, Baackes steered L.A. Care towards growth and expansion, while improving the payer’s ability to serve low-income and vulnerable populations.
Jay Asser is the contributing editor for strategy at HealthLeaders.
KEY TAKEAWAYS
Teladoc Health, Banner Health, and L.A. Care Health Plan recently announced CEO changes as the result of a change in direction or retirements.
The turnover is part of an industry-wide trend that is putting immense pressure on both leaders and organizations to find the right fit.