Humana Inc. (NYSE: HUM) CEO Bruce Broussard will step down in late 2024, with incoming COO and President Jim Rechtin on deck to succeed him.
Rechtin comes to Humana from Envision Healthcare where he is now president and CEO. He transitions to the COO role for the insurance behemoth as of Jan. 8, 2024 and will take the helm following Broussard’s departure.
“The board of directors has worked diligently to find the right leader who can take Humana into the next phase of growth and transformation,” Humana Board Chairman Kurt Hilzinger said in a statement. “Jim brings a strong combination of operational, industry and CEO expertise. His first-hand experience leading through challenges and opportunities of a changing health care services continuum will help accelerate our integrated care strategy at pace.”
Prior to Envision, Rechtin was president of OptumCare, a subsidiary of UnitedHealth Group (NYSE: UNH) and a major home health and hospice provider. All told, he has more than 22 years of experience with value-based health care and payment models, including Medicare Advantage, according to a Humana press release.
Humana is the second-largest operator of Medicare Advantage plans, representing 18% of that market, according to the Kaiser Family Foundation. The company also has the highest number of plans that are participating in the hospice component of the value-based insurance design model demonstration.
More than 30 million seniors are now enrolled in Medicare Advantage, nearly half of the total Medicare population, Kaiser reported.
Broussard’s departure was “long planned,” according to a Humana press release.
He joined the company in 2011 and became CEO in 2013. During his tenure, Humana expanded not only as a payer, it also developed a huge presence in the provider space, including through its home-based care arm, Centerwell.
Humana took a big step into the home-based care arena with its 2018 acquisition of a 40% stake in Kindred at Home, which as of 2020 was the largest provider of home health services by market share in the United States and the second-largest hospice provider, according to LexisNexis.
The private equity firms Welsh, Carson, Anderson & Stowe and TPG Capital owned the remaining 60% until 2021, when Humana acquired 100% ownership in Kindred at Home in a $5.7 billion deal.
Last year, Humana divested a 60% stake in Kindred’s hospice and personal care businesses to the private equity firm Clayton, Dubilier & Rice (CDR) for $2.8 billion. Humana retained the remaining 40%.
CDR later rebranded Kindred’s former hospice segment as Gentiva.
“Leading this company and team of employees is an incredible honor,” Broussard said in a statement. “As we work to make this a seamless transition in the coming months, I look forward to partnering with Jim. He brings a collaborative, thoughtful and innovative leadership style to our organization, making him a natural fit for the culture of today and the future. Additionally, Jim has worked closely with clinicians in many different care settings. That experience will help support our growing clinical footprint and continuing evolution as a health care company and the important work we do in driving health outcomes for our customers.”