Envision Healthcare president and CEO Jim Rechtin will be Humana's next CEO.
Current CEO Bruce Broussard plans to step down from his role in the second half of 2024, the company said Oct. 11. Mr. Rechtin will join Humana as chief operating officer in January and transition to the CEO role later in 2024.
Mr. Rechtin took the helm at Nashville, Tenn.-based Envision Healthcare in 2020. The physician services company and ambulatory surgery center operator has faced a series of financial challenges, eventually filing for bankruptcy in May 2023.
Before joining Envision Healthcare, Mr. Rechtin spent six months as president of UnitedHealth Group subsidiary OptumCare, according to his LinkedIn profile. He was previously senior vice president of strategy and California market president at DaVita Medical Group.
Mr. Broussard is stepping down after a decade as Humana's CEO. He will remain as a strategic advisor to the company into 2025.
"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," Mr. Broussard said in a news release.
Mr. Broussard said Mr. Rechtin's experience working with clinicians "will help support [Humana's] growing clinical footprint and continuing evolution as a healthcare company and the important work we do in driving health outcomes for our customers."
Humana, the second-largest Medicare Advantage insurer, is expanding its care delivery service. The company plans to open 30 to 50 new CenterWell primary care clinics each year through 2025, is expanding to in-home primary care and recently picked up several clinics from Cano Health.
Mr. Rechtin will be paid a base salary of $1.1 million as COO, which will increase to $1.25 million once he assumes the CEO role, according to documents Humana filed with the Securities and Exchange Commission. He will be eligible for executive incentive compensation targeted at 200 percent of his base salary earnings as CEO and receive an initial stock grant of $6 million as well as long-term incentive compensation, also equaling $6 million.