News release: National

June 21, 2002

For more information, call:
Beverly Hayon
Kaiser Permanente
Phone: (510) 271-5953
E-mail: Beverly.Hayon@kp.org

George Halvorson, new CEO, announces changes at Kaiser Permanente

Oakland, CA – Changes in management and organizational structure to take effect July 1st were announced today by George Halvorson, the new Chairman and CEO of Kaiser Foundation Health Plan, and Kaiser Foundation Hospitals, Inc (KFHP/H).

The changes are intended to streamline the reporting structure and organizational approach and will not result in any staff reductions. Kaiser Permanente has been organized into eight regions reporting through two national divisions. With the changes, the regions will now all report directly to headquarters in Oakland, California.

"I want to ensure the best chance for Kaiser Permanente's long term success," said George Halvorson, who took over the reins of KFHP/H on May 1st of this year. "A key to that success is simplifying management structures, and developing more direct accountabilities at all levels of the organization."

Under this new model, the role of California Division President, held by Dick Pettingill, has been eliminated. Pettingill will leave the organization. "Dick Pettingill has made major contributions to Kaiser Permanente. He was stellar in his leadership of California during the turnaround period and he will be missed," said Halvorson.

In addition, Bill Gillespie, MD, executive vice president for patient safety and clinical information systems, has also chosen to leave his position and return to the East Coast. "Dr. Gillespie helped smooth the way in making difficult decisions as the head of our former Texas and North Carolina regions. Since then he has been an eloquent advocate for patient safety and will continue to do so," stated Halvorson. Louise Liang. MD, currently chair of The Institute for Health Improvement and a former president of the Permanente Medical Group in Seattle, Washington has been recruited to take over Dr. Gillespie's position.

In addition to Dr. Liang, other members of the new KFHP/H executive team include:

Bob Briggs	Senior Vice President for Finance
Cliff Dodd	Senior Vice President for Systems and Administration
Arthur Southam, MD	Senior Vice President for Product Development and Market Management
Lon O'Neil	Senior Vice President for Human Resources
Leslie Margolin	Senior Vice President for Health Plan and Hospital Operations
Louise Liang, MD	Senior Vice President for Quality and Automated Medical Record Rollout
Bernard Tyson	Senior Vice President for Communications and External Relations
Steve Zatkin	Senior Vice President for Government Relations
Kirk Miller	Senior Vice President for Legal Services
Ray Baxter	Senior Vice President for Community Benefit
Robert Crane	Senior Vice President for Research, Planning and Policy Development
Dan Garcia	Chief Compliance Officer and KFHP/H Board member

Kaiser Permanente is America's leading integrated health care organization. Founded in 1945, it is a not-for-profit health plan with headquarters in Oakland, California. Kaiser Permanente serves the health care needs of 8.3 million members in 9 states and the District of Columbia. Today, it encompasses Kaiser Foundation Health Plan Inc., Kaiser Foundation Hospitals and their subsidiaries, and the Permanente Medical Groups. Nationwide, Kaiser Permanente includes about 123,000 technical, administrative and clerical employees and approximately 11,000 physicians representing all specialties.