Name: Karen Hanlon
Previous title: President, Highmark Health
New title: President, chief executive officer
Hanlon will become the first woman to serve as CEO of Highmark on Jan. 1, the Pittsburgh-based nonprofit said Tuesday. She will replace David Holmberg, who has served as chief executive since 2014.
Holmberg will transition to the role of executive chairman, where he’ll work closely with the company and board, according to a press release.
Hanlon, a long-time employee of Highmark, has served the company in a variety of C-suite roles, including as CFO and COO. Her appointment to chief executive is part of the board of directors’ “long-term succession planning process,” a Highmark spokesperson said.
Hanlon first joined Highmark in 1997 after a career at accounting firm KPMG, and worked in a variety of finance roles before being named chief financial officer in 2014. She served in that role for four years, before stepping into the COO role. Last year, she was tapped as the organization’s president, a title she’ll continue to carry as CEO.
During her nearly three decades with Highmark, Hanlon has overseen the company’s growth from $17 billion in revenue in 2014 to $35 billion in projected revenue in 2026, according to a press release.
“She understands our business deeply, has earned the trust of our employees and stakeholders, and is the right leader to guide Highmark Health into its next chapter of growth and transformation,” Holmberg said in a release.
Hanlon will now be responsible for leading the entire integrated nonprofit system as Highmark navigates pressures to its bottom line, especially in its health plan segment.
Highmark reaps over 80% of its total revenue from its insurance segment, while the rest of its business is concentrated in its western Pennsylvania health system Allegheny Health Network.
While the health system improved its financials notably last year, turning an operating profit for the first time since 2019, Highmark’s insurance arm has suffered from broader pressure facing health plans, including heightened medical costs.
The plans, which cover around 7 million people, posted an operating loss of $609 million last year.
Although the nonprofit said its adjustments to its products should prompt a recovery this year, the losses prompted credit ratings agency S&P to downgrade its credit outlook for Highmark from “stable” to “negative” earlier this year.
