Nov. 4 (Bloomberg) -- Humana Inc., the second-largest U.S. Medicare managed-care provider, said Chief Executive Officer Michael McCallister will retire in the next 12 to 18 months after more than a decade in the post.
McCallister, 59, will be replaced by Bruce Broussard, who was named president, the Louisville, Kentucky-based company said today in a statement. Broussard, 49, was CEO of McKesson Specialty Health, a $9 billion subsidiary of McKesson Corp. formed in the merger of McKesson Specialty and US Oncology in December 2010.
Humana owns more than 300 clinics in 40 states after acquiring Concentra Inc. in December for $790 million. Under McCallister, the company also has bought small insurance plans to increase Humana’s reach in Medicare, the U.S. government plan serving the elderly and disabled.
“This step has been under consideration by the Board of Directors for more than a year,” McCallister said in the statement. “Broussard brings significant CEO experience in the health industry to Humana along with superb operational and financial leadership skills.”
Humana has announced 18 completed or pending deals in the last five years, with an average size, when disclosed, of $207.2 million and an average premium of 34 percent, according to data compiled by Bloomberg.
Humana fell 0.9 percent to $85.88 at 9:31 a.m. New York time.
--With assistance by Alex Nussbaum in New York. Editors: Bruce Rule, Reg Gale
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