UnitedHealth Group (NYSE: UNH) is one of the largest and most influential entities within the U.S. health care system, with its reach touching the ambulatory surgery center (ASC) space as well.
And it’s currently in the midst of a leadership identity crisis.
On Tuesday, UnitedHealth Group revealed that Andrew Witty was stepping down from the CEO role, effective immediately. The abrupt change at the top of America’s health care titan is due to “personal reasons,” UnitedHealth Group noted in an announcement.
“Leading the people of UnitedHealth Group has been a tremendous honor as they work every day to improve the health system, and they will continue to inspire me,” Witty said in a statement.
Stephen J. Hemsley, who served as UnitedHealth Group’s CEO from 2006 to 2017, has been named Witty’s replacement. Witty will act as a senior advisor for Hemsley moving forward.
“We are grateful for Andrew’s stewardship of UnitedHealth Group, especially during some of the most challenging times any company has ever faced,” Hemsley said in the announcement.
The CEO change at the very top comes less than a month after UnitedHealth Group named Dr. Patrick Conway as the chief executive of Optum, its vast health care services arm. The former CEO, Heather Cianfrocco, shifted to the role of executive vice president of governance, compliance and information security at the parent-company level.
Contextually, UnitedHealth Group’s leadership changes could carry significant implications for the ASC industry.
Among UnitedHealth Group and Optum’s many affiliates is Surgical Care Affiliates, more commonly known under the brand name SCA Health in recent years. SCA Health is one of the three largest ASC chains in the nation, with more than 300 surgery centers across dozens of states.
The ASC management organization’s services span a wide range of specialties, with an increasing focus on high-acuity procedures.
SCA Health describes its ASC strategy as a physician-led, MSO-model of practice management, meant to better align incentives to support growth and transition to value. There are more than 11,300 employees under SCA Health, including about 9,200 physicians who serve in the network.
With Hemsley’s return as UnitedHealth Group’s CEO, there may be a renewed focus on integrating insurance and care delivery, potentially affecting how ASCs like SCA Health operate within the broader health care ecosystem.
Additionally, Dr. Conway’s appointment as Optum’s CEO suggests a continued – or increased – emphasis on value-based care.
From 2011 to 2017, Conway served as deputy administrator for innovation and quality at the U.S. Centers for Medicare & Medicaid Services (CMS). He also served as director of the Center for Medicare and Medicaid Innovation (CMMI), and as the agency’s chief medical officer.
During that time, Conway played key roles in developing and implementing value-based care models, a concept he has repeatedly championed over the years.
Whenever a major player in a given market experiences leadership changes or strategic shifts, there’s a chance for downstream effects on its peers. With that in mind, the recent developments at UnitedHealth Group and Optum could represent more than just executive reshuffling for ASC stakeholders.
