Harvard Pilgrim CEO guides turnaround after $28M operating loss in 2017

Harvard Pilgrim Health Care's CEO is steering financial improvements after years of operating losses and the abrupt resignation of the health insurer's former chief executive, according to the Boston Globe.

In June 2018, former Harvard Pilgrim President and CEO Eric Schultz resigned, citing behavior that was "inconsistent" with company values. Harvard Pilgrim appointed Michael Carson its new CEO after the departure.

Mr. Carson took over a health insurer facing financial hardship and membership losses. In 2015, Harvard Pilgrim posted a $78.8 million operating loss. In 2016, that operating loss grew to $91.3 million. In 2017, the payer trimmed its operating loss to $28.3 million, and in 2018 swang back into black with an operating income of $70.9 million on revenue of $3.2 billion, according to the Globe.

Under Mr. Carson's leadership, Harvard Pilgrim cut or changed about 50 jobs. The payer also increased health plan premiums. The increase and other changes cost Harvard Pilgrim tens of thousands of members, but Mr. Carson deemed the changes necessary.

"It's really about making smart decisions on pricing and which products, which segments, which markets we perform in," Mr. Carson told the Globe. "Sometimes that means you walk away from some business."

More articles on payers:
Anthem, Cigna await court's decision on multibillion-dollar breakup case
Trump officials, Kentucky governor defend Medicaid work requirements
Judge orders hearing before signing off on CVS-Aetna deal

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months