LOUISVILLE, Ky. (WDRB) — Jim Rechtin will take the reins of Louisville-based Humana Inc. on July 1, the company said Monday.
Rechtin, the former CEO of private equity-owned physician staffing firm Envision Healthcare, joined Humana earlier this year as part of a plan to succeed longtime CEO Bruce Broussard in the second half of 2024. The precise timing of the handoff wasn’t previously announced.
Broussard, who has led Humana since 2013, will remain an advisor to the company and board member of its foundation before completely severing ties in 2026.
In a news release, Humana board chairman Kurt Hilzinger said the board is confident Rechtin is ready to take over.
“Since joining Humana, Jim has embedded himself in our business and quickly connected with our employees and customers,” he said.
Rechtin joins at a challenging time for the company, whose stock has shed about $20 billion in market value since the fall of 2023.
Humana’s core business providing Medicare Advantage coverage to more than 5 million senior citizens is being squeezed by rising healthcare costs and stagnant government payments.
The company slashed its long-term profit outlook earlier this year and forecast paring back its Medicare business in 2025 to avoid losses.
Rechtin said April 24 that he remains optimistic about the business that brings in 80% of Humana’s more-than $100 billion in annual revenue.
“While we anticipate disruption in the near term, the sector fundamentals are sound … We believe the industry will continue to grow and Humana will be well positioned to remain a leader in the market,” Rechtin told analysts on the company’s quarterly earnings call.
Rechtin, a Kentucky native, will also take over a company that is less rooted in its hometown of Louisville than in the past. Notably, Humana announced in February that it will vacate its iconic headquarters tower in the heart of the downtown.
In his employment contract last year, Humana gave Rechtin the choice of relocating to Louisville or Washington, D.C. — where a number of top Humana executives are now based — before assuming the CEO role. The company has not said where Rechtin will permanently live.
“Jim has not finalized his relocation plans yet. For now, he will continue to split his time between Louisville and Washington, D.C., as well as other Humana and CenterWell locations,” Humana spokesman Mark Taylor said.
