Dive Temporary:
- Optum has tapped its second chief monetary officer in fewer than six months, confirming to Healthcare Dive that Ben Eklo, a longtime finance govt with the corporate, is getting into the function.
- Eklo is changing Roger Connor, who was named the CFO of Optum in Could, efficient Nov. 1, a spokesperson stated.
- It’s the most recent administration shakeup at Optum’s mum or dad firm UnitedHealth, which has struggled amid acute operational, regulatory and public relations challenges this 12 months.
Dive Perception:
Connor is departing Optum to return to the UK to spend extra time together with his household, in line with an inner memo reviewed by Bloomberg. Eklo, who’s been with UnitedHealth for nearly twenty years, will step up as CFO in his place.
“This modification displays our broad dedication towards optimum execution throughout the corporate that may assist drive improved efficiency for years to return,” the UnitedHealth spokesperson stated.
As Optum’s CFO, Eklo will handle the funds of a division that’s bigger than most standalone corporations, with greater than $250 billion in annual income.
Optum consists of UnitedHealth’s large pharmacy advantages enterprise, supplier community, information and know-how belongings, and extra. The subsidiary is one in all UnitedHealth’s two major reporting divisions, but accounts for greater than half of its complete working revenue.
Eklo’s appointment is the most recent in a flurry of govt modifications this 12 months as UnitedHealth makes an attempt to shore up investor confidence amid a sequence of current crises, together with an enormous cyberattack, the killing of a prime insurance coverage govt and rising medical prices in its insurance coverage enterprise.
In April, UnitedHealth slashed its 2025 outlook and underperformed earnings targets for the primary time in additional than a decade. One month later, CEO Andrew Witty abruptly stepped down and was changed by Stephen Hemsley, the chair of UnitedHealth’s board and its former CEO.
Since then, Hemsley has tapped a brand new chief monetary officer and changed leaders at care supply unit Optum Well being, information and analytics arm Optum Perception and payer enterprise UnitedHealthcare.
The CEO has additionally dedicated to better public transparency and accountability, forming a brand new board committee to supervise these efforts.
The modifications have but to reassure buyers. UnitedHealth’s inventory has recovered considerably for the reason that spring, however remains to be down greater than 28% 12 months up to now. Some shareholders are additionally involved a few lack of oversight with Hemsley holding the highest board and administration jobs.
UnitedHealth is ready to report third quarter earnings earlier than market open on Oct. 28.
