Molina Healthcare today announced its new president and chief executive officer—months after the health insurance company fired its founder’s sons from their executive roles.
In addition to being named CEO, Joseph M. Zubretsky, 60, will also be appointed as a member of the board of directors when he joins the company effective November 6, according to Molina Healthcare.
Zubretsky most recently served as president, CEO and a member of the board of directors for The Hanover Insurance Group, where, according to the Worcester Telegram & Gazette, he worked for just over a year and a half, adding “$174 million to reserves as a buffer against claims” and cutting around 160 jobs to lower expenses.
“The board and I are thrilled to welcome Joe Zubretsky as Molina’s next President and CEO,” Dale B. Wolf, chairman of the Molina Healthcare Board of Directors, said in a statement.
“Joe is the right CEO to lead Molina during this transformative period. He has a track record of strong leadership across multiple businesses, both inside and outside managed care, and has first-hand experience in leading restructuring efforts at previous organizations. We are confident that, under Joe’s leadership, Molina is well-positioned to realize the benefits of our transformation, build on the company’s strengths, drive operational excellence, and increase shareholder value.”
Zubretsky replaces former CEO J. Mario Molina who, along with his brother, former Chief Financial Officer John Molina, were fired in May in light of the company’s “disappointing financial performance.” Since that time, Chief Accounting Officer Joseph W. White has served as interim CEO and CFO. White will continue with Molina as CFO.
“I’d like to thank Joe White for his exemplary leadership and contributions to Molina during his tenure as interim CEO,” Wolf stated. “Joe took urgent actions over the past five months to substantially improve the Company’s financial performance going forward. Most notably, his involvement in the implementation of a company-wide restructuring plan has created positive momentum and focused the company on pursuing operational excellence and greater profitability.”
According to Molina, Zubretsky has over 35 years of experience in the insurance and financial services industries, and has also worked at Aetna in different capacities and “served in a variety of senior management roles in the healthcare and financial services sector.” He started his career with a London-based accounting firm, becoming a partner in its national insurance industry group. He also has a bachelor’s degree in business administration from the University of Hartford.
“I am excited to begin my new role at Molina Healthcare,” Zubretsky said in a statement. “The company’s rich heritage and focus on serving families and individuals in need, combined with an unwavering mission-driven culture, generate a compelling service offering in the government healthcare space. I feel a strong obligation to champion operational improvement efforts and growth initiatives that will build on the organizational pride of our employees, as I believe this will ultimately translate into greater value for the customers we contract with, providers, members, and our shareholders.”