HARTFORD, Conn., September 5, 2000 — Aetna Inc. (NYSE: ΑET) today announced that John W. Rowe, M.D., President and Chief Executive Officer of Mount Sinai NYU Health, has been named President and Chief Executive Officer of Aetna U.S. Healthcare, Aetna's health care subsidiary, and a member of the Aetna U.S. Healthcare and
Aetna Inc. boards of directors, effective September 15.
Upon completion of the previously announced spin-off of Aetna's health business and sale of its financial services and international businesses to ING Group, Dr. Rowe, 56, will become President and Chief Executive Officer of the new health care company, which will be renamed Aetna Inc. Aetna Chairman and Chief Executive Officer
William H. Donaldson, 69, will continue as Chairman of the new health company after the spin-off.
"Dr. Jack Rowe is an outstanding choice to help Aetna accomplish its strategic goal of improving its financial performance by remaking its business model to meet consumer
demands for choice and flexibility, and enhancing relationships with doctors and hospitals," Donaldson said.
"He is a proven leader and manager, who has successfully led a large, nationally recognized health care complex through a period of major expansion and change. He has shown an ability to set and meet strategic goals, motivate an organization, manage costs and meet financial objectives.
"He also is a distinguished and nationally respected physician, with substantial hands-on experience with managed care. He has been a leader in redefining how health care will be delivered in the future, and truly understands the needs and concerns of patients, doctors and hospitals, and the role of health care in society. He brings a fresh perspective to the health insurance industry.
"Jack has a thorough understanding of the complex financial and regulatory challenges facing the health care industry and strategies for controlling costs while improving quality. He achieved superior financial performance and enhanced national recognition for the Mount Sinai Medical Center, School and Hospital, in a period of significant fiscal pressure in academic medical centers.
"He conceived and executed one of the largest hospital system mergers in history,
Mount Sinai and NYU Medical Center, successfully blending two very distinct cultures. Today, it has $1.8 billion in revenue and 31,000 employees.
"His wealth of experience in the health care industry gives him unique insights into how we can improve our relationships with patients, doctors, hospitals and others in the health care community. With his 13 years at Mount Sinai and 30 years as a medical doctor, Jack has learned firsthand how critical it is that insurers and physicians respect each other, working together to create a health care system that delivers the highest quality care in the world.
"He has an excellent understanding of the critical role that technology can play in improving the quality of the health care system. And he is an active national leader in health care public policy debates," Donaldson said.
"We must work with other key stakeholders to ensure the success of the health care system by providing access to high-quality, affordable, stable and 'hassle-free' health care," Dr. Rowe said. "This is a once-in-a-lifetime opportunity to lead the nation's largest health care benefits company and, in the process, help shape this country's health care industry at a critical point in its evolution.
"I look forward to working with Bill Donaldson, the board and the management team, and all employees at Aetna to build on the changes they have already begun. I will be intensely focused on improving Aetna's financial performance and redefining its business model to ensure its long-term profitability and premier place in the industry. This will require not only improving our relationships with doctors, hospitals and other health care professionals, but also improving the quality and efficiency of our services to our customers.
"We want to build on Aetna's strengths, which include its people, a strong brand, large scale, financial strength, a vast database of health care information, a heightened focus on health care, new management and a demonstrated commitment to change,"
Dr. Rowe said.
As President and CEO of Mount Sinai NYU Health, a position he assumed after overseeing the 1998 merger of the Mount Sinai and NYU Medical Centers, Dr. Rowe has been responsible for the successful integration of the two organizations. Significant achievements in this effort include greater-than-anticipated merger-related cost savings, increases in patient volume and market share post merger, the completion of a
$660 million bond offering, the implementation of the largest fully automated clinical laboratory, and the purchase of Western Queens Community Hospital, which was converted to the Mount Sinai Hospital of Queens.
At Mount Sinai prior to the merger, under Dr. Rowe's leadership, the Medical Center, School, and Hospital sustained superior financial performance throughout a period of significant fiscal pressure in academic medical centers. Dr. Rowe also is credited with
the establishment of the Mount Sinai Health System, which grew to be the largest
integrated health care system in the region, and with improving Mount Sinai Hospital clinical services and effectiveness, with significant increases in patient volume and the complexity of services rendered.
During his tenure as President of the School of Medicine, Mount Sinai's basic and clinical research efforts grew dramatically, as reflected in the construction of major new research facilities, a near tripling of federal research grant support, increases in the national ranking of the medical school, and a substantial increase in the academic credentials of the student body.
Before joining Mount Sinai, Dr. Rowe was a Professor of Medicine and the founding Director of the Division on Aging at Harvard Medical School, and served as Chief of Gerontology at Boston's Beth Israel Hospital. Dr. Rowe was a Director of the MacArthur Foundation Research Network on Successful Aging, and served on the Board of Governors of the American Board of Internal Medicine and as President of the Gerontological Society of America. He is a member of the Institute of Medicine of the National Academy of Sciences and the Medicare Payment Advisory Commission.
Dr. Rowe has authored over 200 scientific publications, primarily in physiology of the aging process, and recently co-authored Successful Aging. He has received many honors and awards for his research and health policy efforts.
Dr. Rowe received his medical degree from the University of Rochester School of Medicine in Rochester in 1970. He did his residency in internal medicine at Beth Israel Hospital in Boston, and served as a clinical and research fellow at Massachusetts General Hospital and Harvard Medical School, as well as the National Institutes of Health.
A Fortune 50 company, Aetna provides over 45 million people worldwide with quality products, services and information. Aetna is the nation's leading health and related benefits company with 19.4 million health members, 14.6 million dental members, and 11.5 million group insurance members.
