SX boss Bowie resigns

Southern Cross chief executive Roger Bowie has dropped a bombshell and resigned his position as head of the country's largest health insurere.
The resignation is over operational matters.

"The board and the chief executive have agreed that due to the differences in the way they see the future direction of Southern Cross, it is in the mutual interests of both that the chief executive steps aside," the company says in a release.

As a result of Bowie's resignation, a special sub-committee of board members has been created, to be chaired by audit committee chairman, Bryan Kensington, to oversee resolution of the current problems.
A search for a replacement for Bowie is starting immediately.
Chairman Hylton LeGrice says that the board offered profound apologies to members for the present situation, and gave an emphatic assurance to members that the delays in processing claims were purely as a result of inadequate administrative actions and staffing levels, coupled with the adoption of a new computer system.

Currently the company has about $25 million of unpaid claims.

"Southern Cross is in a strong financial position, as exhibited by the strength of its balance sheet and the recently confirmed Standard and Poor's credit rating of AA-. The Society is solvent and currently has more than adequate liquid funds to meet existing and ongoing claims.

"Nevertheless, in order to give members continuing confidence in Southern Cross's financial position the board had decided to seek an independent review of the organisation's finances.".
Le Grice says the board is proposing a number of key initiatives designed to restore the confidence of members, staff, the medical profession, private hospitals and other providers. These include:
(i) The board sub-committee assuming responsibility for overseeing day-to-day management and resolving operational issues such as claims processing and call centre performance
(ii) A more regular reporting to members and other stakeholders of the state of Southern Cross claims processing.
(iii) The independent financial review to re-confirm the strength of Southern Cross' financial position.
(iv) The release, as soon as possible, of an updated status report concerning operational issues based on the board sub-committee's initial findings