Humana has named a new leader for its growing CenterWell business, the company announced early Wednesday.
Sanjay Shetty, M.D., will join the company as president of the CenterWell arm on April 1. He will report to CEO Bruce Broussard. CenterWell includes Humana's senior-focused primary care clinics, its home health business and its pharmacy benefit manager, which is the fourth largest in the country.
Shetty currently serves as president of Steward Health Care System in Dallas. Broussard said in a statement that Shetty's experience in managing a large health system, including the nation's largest accountable care organization, will be key to success in the newly created position.
“His deep understanding of technology and application of data and analytics in modernizing workflows will be immensely valuable in advancing our goal to deliver the best, most wholistic care for seniors," Broussard said in the release. "As a pioneer in health care’s transition to value-based care, Sanjay’s leadership role with Steward’s Accountable Care Organization—the nation’s largest—will have critical relevance to his new role at Humana.”
In addition, the insurer has promoted George Renaudin, its senior vice president and president of Medicare, to serve as president of Medicare and Medicaid, effective immediately. Renaudin has led the charge on Humana's expansion in Medicare Advantage and aims to bring that experience to the Medicaid space.
Broussard said Renaudin has been "integral to our success as a company."
The executive moves were announced alongside the insurer's fourth-quarter and year-end earnings for 2022. Humana reported a $15 million loss in the quarter as well as $22.4 billion in revenue.
Wall Street analysts anticipated the loss, and the results still surpassed their expectations, according to experts at Zacks Investment Research. Humana did miss on revenue for the quarter, however, as analysts predicted $22.5 billion.
For the full year, Humana posted $2.8 billion in profit, down 4.8% from the $2.9 billion reported in 2021. Full-year revenues were up by 11.8%, though, growing to $92.9 billion in 2022 from $83 billion in 2021.
For 2023, the company expects to bring in at least $27.57 in earnings per share.
Humana ended the year with 17.1 million members across all of its plans, including 8.7 million across its Medicare Advantage and standalone Medicare prescription drug plans. The insurer reaffirmed its ambitious growth targets for 2023 and said it expects to add 625,000 Medicare Advantage members this year, or growth of 13.7% from 2022.
This would represent a significant reversal of fortune for the company, which made waves a year ago when it drastically slashed its membership outlook after a disappointing open enrollment performance.
""This robust membership outlook reflects high quality growth, with our improvement in retention more than doubling expectations, and marks a continuation of our strong track record of membership growth, with our compounded annual growth from 2018 to 2022 at 10.4% as compared to industry growth of 9.7%," Broussard said in the earnings release.