Leslie Norwalk resigned this week from Centene Corp.’s board of administrators over a disagreement in regards to the governance course of and committee management.
Her resignation letter was made public by Centene Friday in a submitting with the U.S. Securities and Trade Fee.
Norwalk, former administrator of the Facilities for Medicaid and Medicare Companies, was appointed to the insurer’s board in January. She is strategic counsel to legislation agency Epstein Becker Inexperienced.
Norwalk didn’t instantly reply to interview requests.
“The governance course of surrounding a current vital resolution fell egregiously in need of what I and various different board members thought-about acceptable,” Norwalk wrote in her resignation letter, dated April 11.
She wrote that the complete board didn’t obtain enough info prematurely of a vote on a “key matter” nor the chance to debate it, which contradicted the board’s normal course of. Centene “is greatest served with board and committee chairs that recognize the significance of fine governance practices,” she wrote.
She ended the letter saying that, after discussions with present management, she was “not assured that significant modifications can be made well timed, if in any respect.”
The letter was addressed to the complete board and particularly to H. James Dallas, performing 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 quick time on Centene’s board, she served on the board’s compliance, environmental and social duty and authorities and regulatory affairs committees. She beforehand served as a board member of Magellan Well being, a behavioral well being supplier Centene acquired for $2.2 billion final yr.
On earnings calls, Centene executives have mentioned they need to shed non-core pharmacy belongings, and there was hypothesis that Magellan is likely to be a kind of belongings. Centene has reserved $1.25 billion to settle allegations that its now-defunct pharmacy profit administration platform overcharged state Medicaid departments for medicine.
In January, Magellan took over administration of California’s Medicaid prescription drug program.
Employee shortages pissed off 1000’s of sufferers ready for prior authorization approvals, a few of whom had been on maintain with the corporate’s name facilities for eight hours at a time. State workers stepped in to man the corporate name facilities, though state staff are not buyer help on behalf of the corporate. California’s healthcare company mentioned it withheld $3.8 million–or 64%–of Magellan’s January contract as a penalty.
Norwalk’s departure comes as Centene is making modifications to its board, pushed partly by the arrival of activist hedge fund Politan Capital Administration.
In November, Politan invested $900 million in Centene, with the purpose of accelerating the insurer’s worth by promoting sure subsidiaries and overhauling Centene’s management and board.
Since then, 5 impartial board members accredited by Politan have joined the board and 6 longtime board members have retired or introduced plans to step down.
Politan didn’t instantly reply to an interview request.
In Friday’s SEC submitting, Centene mentioned since November it additionally has modified the heads of its nominating and governance, audit and compensation committees. The corporate additionally has separated the roles 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 companies result in CEO. London succeeded longtime CEO Michael Neidorff, who died final week.
Within the SEC submitting, Centene mentioned the “complete board” helps London.