A Study of Humana Inc.

Junior (College 3rd year) ・Healthcare&Medicine ・APA ・4 Sources

One of the aspects that have allowed Humana Inc. to enjoy uninterrupted growth and success is its corporate culture of change and innovation. Since it was established in the 1960s, the firm has remained versatile by withstanding market changes and disruptive events from external and internal environments. It has remade itself severally from a nursing homes operator, to health management consultant, and to the current integrated focus of health and hospital plans. One of the best examples where adaptability helped the company in surviving the wavy market trends was the early 1990s, where Humana restructured its business to cushion itself from increasing medical cost as well as drops in stock prices and hospital earning, which accounted for most of its earning (Gilson, 2010, p.497). The disruption in the market was aggravated by internal challenges, where the capitation-based remuneration resulted in higher attrition rates, with physicians who had been employed in Humana hospitals discrediting the quality of services as well as higher charges imposed on other insurers. The move threatened success that that had been achieved over the years, an aspect that was exacerbated by unfavorable media coverage as well as non-trivial risk where the federal government’s austerity measures resulted in underfunding of Medicaid and Medicare (Gilson, 2010, p.497). While it was going to increase administrative cost, the management adopted a spin-off plan in 1992, with a raft of cost containment policies, an aspect that has remained on of the boldest move in the history of the company.

Another remarkable aspect that highlights the impact of innovativeness in creating value is the company’s response to Obamacare reforms. The enactment of the Affordable Care Act changed the business landscape with the healthcare laws calling for increased accountability. Humana has addressed the disruption by adopting digital approaches, where it has been using IBM BPM and recruiting exceptional talents to induce not only creative thinking but also IT perspectives in its business (www.globalknowledge.com, 2017). The engagement has not only resulted in paperless and simplified customer experience, but also efficiency in service delivery and managing cost. Besides having an inclusive change management approach, its staffs continue to receive training on the new elements, an aspect that has not only led to minimal resistance but also uniqueness and success.

Organizational Structure and Leadership

The current organizational structure was adopted at the beginning of the century when the company abandoned its old system, where it had autonomous Hospitals and Healthcare Plans wings, which were controlled by the parent company and under the leadership of two presidents. The current management of the firm is under a Board of Directors, with the primary role being providing guidance in all decisions made by the Company's Management. However, the CEO is a member of the BOD. Besides the deputy, the executive is made up of other thirteen seasoned persons, who oversee various functions. Besides making the decision, the executive also works with top-tier managers.

Humana Inc. CEO Bruce Broussard has broad experience from years of executive leadership in various private and publicly traded firms. Although he has been at the helm of stand-alone organizations, he has witnessed merger of several companies, an aspect that has perhaps influenced consolidation of Humana and Aetna in his regime to increase nationwide presence and deliver technology-driven products. His background as a financial expert is evident in the Humana’s cultural of innovativeness, where he has proposed the integrated care delivery model to lower operational costs (www.aetna.com, 2015).

Diversity Management

While it has in previous cases been accused of discriminatory aspects as the case of the infamous Linda Peeno incident in 1996, Humana has a track record of cultivating uniqueness through an inclusive culture. The primary focus of the diversity programs is its associates, where it has built a workplace environment that acknowledges the multicultural complexity, including people with disability and LGBTs (www.humana.com, 2017). With the company’s backbone being innovativeness, the company continues to recruit diverse talents as well as reaching to new individuals such as the veterans. Humana’s corporate citizenry approaches also recognize the multicultural initiatives as demonstrated by YMCA Black Achiever’s Program, engaging the National Council of La Raza, Project BUILD, and Habitat for Humanity.


A Workplace Inspired by Inclusion and Diversity - Humana Careers. (2017). Humana.com. Retrieved 25 January 2017, from https://www.humana.com/about/careers/inclusion-diversity/

Aetna to acquire Humana. (2017). The Health Section. Retrieved 25 January 2017, from https://news.aetna.com/2015/08/aetna-to-acquire-humana/

Gilson, S. (2010). Creating value through corporate restructuring (1st ed., p. 497). Hoboken, New Jersey: Wiley.

How Humana Is Using Business Process Innovation to Deliver a Superb Customer Experience. (2017). Globalknowledge.com. Retrieved 25 January 2017, from https://www.globalknowledge.com/us-en/resources/case-studies/how-humana-is-using-business-process-innovation-to-deliver-a-superb-customer-experience/"

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