The resignation letter, signed simply "Eric," stupefied many workers of Harvard Pilgrim Neatly being Care.
President and CEO Eric Schultz had been under investigation for no lower than three weeks, in step with workers who spoke on background because they had been no longer authorized by the firm to talk on the topic. Several of those workers added that everyone thru that time, they had no reason to think the findings would pressure Schultz to proceed.
But that wasn't the case.
"Regrettably, I just no longer too lengthy in the past exhibited habits that became inconsistent with my private core values and the firm's core values and code of conduct," Schultz wrote in a letter, dated June 12, to his board and workers. "I made mistakes, and I'm basically sorry."
Harvard Pilgrim offered no extra particulars referring to the conduct that triggered Schultz's resignation. Two of the workers who spoke on background acknowledged it is rarely going there will seemingly be any extra fallout for the firm as a results of Schultz's departure.
But his exit comes amid discussions that would result in major modifications for Massachusetts' 2nd finest successfully being insurer. In Could maybe per chance also simply, Harvard Pilgrim confirmed talks with Companions HealthCare that some contributors quiz of will lift out in a merger. So, to boot to to questions over Schultz' resignation, many who work in successfully being care are questioning: What does his abrupt departure mean for the rising affiliation?
Companions acknowledged talks are ongoing.
"This development will don't recognize any influence on our discussions with Companions HealthCare," acknowledged Harvard Pilgrim spokeswoman Joan Fallon. "Those talks are persevering with."
Michael Carson, who has been tapped by Harvard Pilgrim's board to replace Schultz as president, became no longer in the market for an interview. But colleagues acknowledged he has been extra pondering talks with Companions than became Schultz.
The departing CEO might per chance moreover had been pondering about his feature in any original entity. And while Schultz' journey is a loss, and ought to unexcited build Harvard Pilgrim a piece less appealing to Companions, his resignation eliminates the build aside a question to about what would happen to the "assorted" CEO.
That build aside a question to had changed into quite a distraction, in step with quite so a lot of folks shut to the talks. They acknowledged the point of ardour can stay now on assessing whether a merger or affiliation would be helpful for sufferers, to boot to the 2 organizations.
Every corporations are acknowledged to be engaged on those questions extra internally at this stage earlier than deciding whether to take a proposal to their respective boards.