Did anyone buy the talking points from the Q4 town hall. Gail seemed off her game probably because the stock dropped so much. Gallina basically said we had a good quarter but everyone is at fault for the medical costs miss. Probably a hint toward AIP being docked. Others seem to imply that we worked ourselves to death and acheived good results. And while they acknowledged the pace wasn't sustainable, they definitely don't have any plan for making it better especially with the continued RIFs. So all in all just more corp speak from people who find everyone but themselves replaceable.
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If the stock price keeps dropping, then the current CEO is out, but unfortunately it isn't the CEO which has the largest contribution in this sinking ship; it's the CAO which is so hell bent on the legato strategy.
Nobody should be surprised at a high medical loss ratio, legato resources might be cheaper on paper by the hour, but they drive up the operational costs with the constant incompetence.
Anthem leadership just looks at numbers on paper which reference a singular point of time and doesn't portray the full picture. An example: lets say the cost to build project XYZ was done within 300,000$ by utilizing legato resources, while another vendor quoted $700,000, the short sighted leadership figures interpret this as a 400,000 savings but in reality the opportunity cost to utilize legato is too substantial. Nobody is keeping track of the cost of putting out the constant fires, fixing the recurring issues, and required oversight of legato associates. These intangibles raise the operational costs through the roof - and what does leadership do? They continue to replace quality people with more legato in an attempt to drive the cost down!
Imagine if your house was on fire, and the first responders came in with a truck full of gasoline to hose the fire down, that's the best analogy I can come up with when describing the situation at anthem.
What a mess.
Being lectured about culture from the people who are destroying the culture and morale is insulting.
One word: Merger
Wall Street's reaction and its lack of trust that Anthem can control MLR will encourage Leadership to speed up the RIFs and move more jobs offshore. Gotta reduce the cost of labor to offset MLR
AIP will be affected because it is tied to EPS and Wall Street
Great summary, felt the same. Talk out of both sides, you all worked hard but you’re still not doing enough. There is only so much associates can do at this point with all the RIFs and reorg that create more chaos. You’re right, the top decision makers never take ownership of the problems. And please stop with all the culture nonsense, we all see right through it. Actions speak louder than words
true: ail seemed off her game probably because the stock dropped so much