Ailing Health Plan Replaces Chairman, President
LOS ANGELES (AP) _ Ailing Maxicare Health Plans Inc. has replaced its husband-and-wife team of top managers, naming a film industry accountant as chairman of the nation’s largest health maintenance organization.
Maxicare said Monday it had appointed Peter J. Ratican, 44, an outside director, as chairman, president and chief executive. Ratican previously was chief financial officer and board member at DeLaurentiis Film Group, which is restructuring in an attempt to solve its own financial problems.
Ratican succeeds Fred W. Wasserman, chairman and chief executive, and Wasserman’s wife, Pamela K. Anderson, who was president. Wasserman, 50, who helped found the company in 1973, and Ms. Anderson, 41, will stay on as consultants for one year, the company said, without giving a reason for the change.
The changes won’t affect the plan’s 2 million members in 19 states and there aren’t any layoffs planned, said spokeswoman Tobi Nyberg.
Maxicare, which has sold some assets in a restructuring effort, also said it expected to post a $50 million loss in the second quarter.
The company, troubled by debt incurred in an ambitious expansion plan, stiff competition in the industry and rising medical costs, has reported losses in the last six quarters. In the first quarter of this year, the company lost $21.3 million on revenue of $485.9 million.