Leslie Norwalk resigned this week from Centene Corp.’s board of administrators over a confrontation concerning the governance procedure and committee management.
Her resignation letter was once made public by means of Centene Friday in a submitting with the U.S. Securities and Change Fee.
Norwalk, former administrator of the Facilities for Medicaid and Medicare Services and products, was once appointed to the insurer’s board in January. She is strategic recommend to legislation company Epstein Becker Inexperienced.
Norwalk didn’t instantly reply to interview requests.
“The governance procedure surrounding a up to date necessary resolution fell egregiously in need of what I and a variety of different board contributors regarded as suitable,” Norwalk wrote in her resignation letter, dated April 11.
She wrote that the whole board didn’t obtain good enough knowledge upfront of a vote on a “key subject” nor the chance to talk about it, which contradicted the board’s usual procedure. Centene “is very best served with board and committee chairs that admire the significance of fine governance practices,” she wrote.
She ended the letter pronouncing that, after discussions with present management, she was once “now not assured that significant adjustments will probably be made well timed, if in any respect.”
The letter was once addressed to all of the board and particularly to H. James Dallas, appearing chair, and Jessica Blume, chair of the board’s nominating and governance committee.
Centene didn’t instantly reply to an interview request.
In Norwalk’s couple of minutes on Centene’s board, she served at the board’s compliance, environmental and social duty and executive and regulatory affairs committees. She up to now served as a board member of Magellan Well being, a behavioral well being supplier Centene got for $2.2 billion closing 12 months.
On profits calls, Centene executives have stated they need to shed non-core pharmacy belongings, and there was hypothesis that Magellan could be a kind of belongings. Centene has reserved $1.25 billion to settle allegations that its now-defunct pharmacy receive advantages control platform overcharged state Medicaid departments for medicine.
In January, Magellan took over control of California’s Medicaid prescription drug program.
Employee shortages annoyed hundreds of sufferers looking forward to prior authorization approvals, a few of whom have been on grasp with the corporate’s name facilities for 8 hours at a time. State workers stepped in to guy the corporate name facilities, even if state staff are not buyer enhance on behalf of the corporate. California’s healthcare company stated it withheld $3.8 million–or 64%–of Magellan’s January contract as a penalty.
Norwalk’s departure comes as Centene is making adjustments to its board, pushed partially by means of the coming of activist hedge fund Politan Capital Control.
In November, Politan invested $900 million in Centene, with the objective of accelerating the insurer’s price by means of promoting positive subsidiaries and overhauling Centene’s management and board.
Since then, 5 impartial board contributors licensed by means of Politan have joined the board and 6 longtime board contributors have retired or introduced plans to step down.
Politan didn’t instantly reply to an interview request.
In Friday’s SEC submitting, Centene stated since November it additionally has modified the heads of its nominating and governance, audit and reimbursement committees. The corporate additionally has separated the jobs of chairman and CEO, appointed a brand new lead impartial director and applied a compulsory board retirement age.
In March, the insurer promoted Sarah London from its tech and healthcare services and products result in CEO. London succeeded longtime CEO Michael Neidorff, who died closing week.
Within the SEC submitting, Centene stated the “whole board” helps London.