* Take the time to
discuss the lawsuits... Use press releases to highlight
what the main issues are and what demands are being
made... How Aetna feels about the issues and what should
be done to address the issues.
* Fix the
issues first, don't wait for the courts... get ahead of
this not reactive... It's a tough case to argue when
the identified problems no longer exist... I once
held a job where I provided service to thousands of
people... I knew my environment well, I knew when problems
existed... I also knew I had three weeks (pain initially
tolerated, then communicated and finally addressed via
management meetings) to fix the problems before I was in
high level meeting. When the meetings occurred I would
have already fixed the problems and would question the
existence of an existing problem... A poll would be done
and the issue would evaporate. The key is I would be
aware of the problems before my customers and I'd work
my tail off to have the problems resolved before the
day of reckoning. The topic - pay the claims in the
preceding section is a good example of fixing the problem
before the court date (instead of a meeting) and it
would also allow the doctors to do their jobs as noted
in the provider section. Let the claim payment
people handle the issues re questionable
Yes some of this will effect margins....
but there is a greater problem here... I'd rather see
$.15 less in earnings a quarter and have a P/E of 20
than have the $.15 with a P/E of 7.
costs more than having your customers and providers
feel like hostages... I do believe this can be turned
around, I have been adding to my holdings since the stock
broke below $40 and have never owned as many shares in
Aetna as I do now... I may be critical, but I am so
because I'd like to see the company prosper again... Had
the old standards remained, they would own this
I agree with your post 100%. USHC was a
successful regional Co and no understanding of what being
National is all about. I am fully aware of the problem,
that is why I am retiring. I see it day to day. The
infamous Peter principle.
You are on target. The problem is not just Huber.
The senior leadership of AUSHC in 3+ years has
demonstrated they are in positions way over thier heads. They
do not understand risk management, customer
management or provider relations management. They came from
a regional HMO. They continued to forget that most
of AUSHC's membership was non HMO. They have
promoted unqualified USHC employees to middle managment
positions. You cannot repair 3 plus years of damage by
replacing the CEO. The CEO and President of AUSHC would be
a good start but you still would have serious
competency issues with General Managers and other middle
management promoted within the last few years.
Compton sold P&C to Travelers and totally blew
the fact that the P&C reserves were the best in the
industry. Now Huber with no experience in Health Care tries
to run a company who's roots have been totally
destroyed. Biggest problem is that the Board has and will
remain a rubber stamp for current management. With HR
10's cooling off period coming to a close (I believe
120 days) Aetna could be an acquisition candidate
even by some unknown Eouopean Financial conglomerate.
With this stock price it is a steal!! Travelers as
well as other well positioned companies are in the
hunt for value companies.
My heart be still!!!!!!!!!!
NO ONE currently at Aetna can run this great company. The new Chairman, CEO, COO, CFO, and CIO MUST come from the outside....or else "same old, same old"
Good news about that Forbes article. Looks like
the Compton & Huber comedy team is finally getting
their due. Now, if only AET can rebuild to even a
fraction of what they were prior to the spring of '96.
Aetna is on the front page. Title: "TRAIN WRECK
IN HARTFORD. Richard Huber bet $10 billion that
Aetna should be in the health care business rather than
in financial services. It was a bad
Huber is ripped apart in a two page article explaining
how "Huber had a "ready-fire-aim" attitude at
Continental Bank...spent $10 billion buying companies like U.
Healthcare and Prudential Health...Aetna's shares are worth
$5.8 billion...Aetna's operating margin in managed
care has fallen from 7.5% (when Huber started his push
into this business) to a dismal 3.3%..."
personal opinion: Huber has to be replaced fast. I agree
with TxAggie60_60 that it would be a bigger mistake
installing Cardillo or any of the USHC mob. USHC defrauded
Aetna when it convinced Aetna to pay 4x the going price
for USHC. The USHC people don't have a clue how to
run a large respectable organization. Aetna needs an
outsider from an outfit like Cigna to come in and dump
Huber and most of the USHC management (screw their
employment agreements from that sweetheart buyout deal)!
Huber wants to be a bully but the best this
pathetic little man can do is to try to bully Mrs.
Goodrich who lost her husband to cancer by describing her
to the press as a "weeping widow". This was after
she won a $120 million judgement against Aetna.
Apparently Huber is still stringing the "weeping widow"
along and we can expect him to take on Ian Malone any
day now. Huber gave a badge to a pathetic little punk
named Dick Farley, head of Aetna corporate security,
and now hides behind him. What a pair of Dicks.