Aetna CEO retires; successor promises continued doctor contact

John Rowe, MD, is credited for turning around the company's bottom line and its dealings with physicians.

By Jonathan G. Bethely, AMNews staff. Jan. 30, 2006.

Aetna Chair and Chief Executive Officer John W. Rowe, MD, is stepping down next month, ending a tenure in which he improved the company's finances -- and its strained relations with physicians.

"He approaches things so much more as a physician and patient advocate, it was a breath of fresh air," said AMA President J. Edward Hill, MD. "He left a direction that is going to be much better for patients, and because its going to be better for patients, it's going to be better for physicians."

But physician leaders also have a warning for Dr. Rowe's successor, current Aetna President Ronald A. Williams: Don't let any plans for growth interfere with physician relations. Part of Dr. Rowe's financial turnaround strategy was reducing Aetna's membership by getting out of unprofitable markets. Indications are that Aetna, having completed that task and having fallen from the nation's No. 1 health plan to No. 3, is looking to get bigger through acquisitions or other means.

"Physicians have such little negotiating power now," said Connecticut State Medical Society Executive Director Tim Norbeck. "When a company gets bigger, whatever negotiating power physicians have is eliminated. The doctors' influence gets smaller. That is also true with patients. ... I think Ron will recognize that and continue to value the relationship with physicians, but obviously that will come into conflict if they continue to grow. You can't serve two masters. I think he will try to juggle both, but I think getting larger, whether you intend it or not, will mean a lesser physician relationship."