Health Net shifts management after weak earnings report

Chairman Roger Greaves said in a statement that the board was "very concerned about the company's recent financial performance. We believe that by refocusing management resources, we can address our challenges with greater intensity."

Greaves said the changes reflected the board's confidence in Woys "as a strong and effective leader of Health Net's operations. In light of the economic uncertainty surrounding our industry and the likelihood of public policy changes, we have directed Jay [Gellert] to focus all of his attention and considerable expertise on the company's strategic direction."

The company also reduced its full-year expectations, excluding charges, to $1.85 to $1.89 a share, down from previous guidance of $2.85 to $2.95 a share.

The third quarter at Health Net was "very ugly" and "has taught us at least one lesson: The weakest operators in good times will still be the weakest operators in bad times," Matt Perry, a vice president in equity research at Wachovia Capital Markets, wrote to clients.

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Diane Levick, a Hartford Courant staff writer, contributed to this report.

lisa.girion@latimes.com