Blue Cross and Blue Shield of Minnesota announces departure of CEO

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Blue Cross and Blue Shield of Minnesota

Jul 19, 2012, 12:05 ET

EAGAN, Minn., July 19, 2012 /PRNewswire-USNewswire/ -- The Blue Cross and Blue Shield of Minnesota (Blue Cross) board of trustees announced that Kenneth Burdick has left the organization as president and CEO, effective immediately. The Board became aware of concerns related to whether there had been adequate disclosure of some anticipated business activities and immediately initiated a Board review and internal investigation of the matter. The internal investigation concluded there had been no financial impropriety or unlawful actions, but the lack of disclosure was not in alignment with Blue Cross policies and management expectations. In addition, the board concluded that the organization required a different style of leadership to lead the organization to a new level of success in a rapidly changing and increasingly more complicated health care business environment.

The Board has named Scott B. Lynch, currently senior vice president and chief legal officer of Blue Cross, as the interim CEO of the organization. The search for a permanent CEO will begin immediately and the Board anticipates identifying a new CEO in 60 to 90 days, but will take the time required to identify the best candidate to lead the organization over the next several years.

"Blue Cross of Minnesota is the largest health plan in Minnesota and is respected for its non-profit mission, values and the innovation we bring to improving health services for our 2.7 million insured members," said Vance Opperman, chair of the Blue Cross board of trustees. "The board concluded we needed a new direction in our CEO to lead this outstanding organization while leveraging the strengths of our dedicated employees in providing the highly valued health products and services that are so important to our members."

Blue Cross and Blue Shield of Minnesota, with headquarters in the St. Paul suburb of Eagan, was chartered in 1933 as Minnesota's first health plan and continues to carry out its charter mission today as a health company: to promote a wider, more economical and timely availability of health services for the people of Minnesota. Blue Cross is a not-for-profit, taxable organization. Blue Cross and Blue Shield of Minnesota is an independent licensee of the Blue Cross and Blue Shield Association, headquartered in Chicago. Go to bluecrossmn.com to learn more about Blue Cross and Blue Shield of Minnesota.

SOURCE Blue Cross and Blue Shield of Minnesota