In his first major move since taking the helm of Kaiser Permanente, George C. Halvorson has engineered an organizational restructuring that has effectively forced out the president of Kaiser's California division.
Kaiser said Friday that Dick Pettingill, the HMO's top operational executive in California since 1999, will be leaving at the end of this month. Kaiser said Pettingill resigned after Halvorson, the chairman and chief executive, decided to eliminate the California division and return to a structure of having a top manager in Southern California and one in the north.
Pettingill, who has been a prominent member of California's health-care industry, helped to oversee Kaiser's financial turnaround in recent years. But under his leadership, Kaiser's image was bruised from a protracted battle with regulators over allegations that Kaiser did not assess or treat ill patients in a timely manner.
Kaiser spokeswoman Beverly Hayon declined to say whether that had anything to do with Pettingill's departure.
In a statement, Halvorson lauded Pettingill for his leadership and major contributions. Pettingill made no statement through Kaiser, and he could not be reached for comment. Kaiser said the restructuring is intended to streamline operations and will not result in staff reductions.
