Centene’s Neidorff To Step Down As CEO In Deal With Activist Investor

Centene chief government Michael Neidorff will retire subsequent 12 months and a brand new board might be created to supervise the well being insurer as a part of a take care of Politan Capital Administration, which had been pushing for modifications.

Neidorff, who has been Centene’s CEO since 1996, will turn into government chairman on the well being insurer, which is understood for offering government-subsidized medical health insurance within the U.S., and can tackle a brand new position as government chairman. A seek for a brand new CEO is underway.

In the meantime, board modifications might be made “as a part of its ongoing board refreshment and governance assessment course of and a cooperation settlement the corporate has entered into with Politan Capital Administration,” Centene mentioned Tuesday of board appointments that might be made Jan. 5, 2022.

A number of of the brand new board members together with former WellCare chief government Ken Burdick, have a medical health insurance background and experience in areas that Centene is robust in akin to Medicaid and particular person protection below the Reasonably priced Care Act in addition to Medicare Benefit. One among Politan’s considerations was Centene had decrease margins than its peer well being insurers, in response to reviews and sources near the corporate.

“The Board of Administrators will appoint 5 new administrators: Ken Burdick, Christopher Coughlin, Wayne DeVeydt, and Theodore Samuels, in addition to a fifth director to be mutually agreed upon by Centene and Politan,” Centene mentioned. “Present director James Dallas will turn into Lead Impartial Director instantly and can assume the Impartial Chair by the top of 2022.”

Below Neidorff, Centene had grown right into a nationwide participant within the Medicaid enterprise in addition to particular person protection below the ACA often known as Obamacare. Centene had grown to insurer 1 in 15 People.

“Nothing has been extra necessary to me than offering the very best high quality of care to essentially the most susceptible populations we serve,” Neidorff mentioned in a press release launched Tuesday asserting modifications at Centene. “I’m deeply appreciative of our staff who’ve labored tirelessly and with an unwavering dedication to serving our members and companions. I’ve been in discussions with the Board about my retirement plans for the reason that summer season, and at the moment I’ve knowledgeable the Board of my resolution to retire as CEO in 2022.”

Neidorff turned Centene in 1996, taking the corporate “from a $40 million company in 1996 serving three counties in two states to a $125 billion market chief,” Centene board director Robert Ditmore mentioned. “Whereas it’s tough to place into phrases the immeasurable influence he has had on this firm and the members whose well being has been remodeled, and the communities which were served, on behalf of all of the Board at Centene we’re immensely grateful and pleased with the work Michael has impressed and delivered as our CEO.”