Aetna Further Reduces Administrative Expenses by Streamlining Corporate and Business Operations.-- Part of a Continuing Effort to Provide Affordable Health Coverage -- -- Goal is Better Alignment of Resources for Customers -- -- Company to Record Fourth-Quarter After-Tax Charge of Approximately $20 Million -- HARTFORD, Conn. -- Aetna (NYSE NYSE See: New York Stock Exchange : AET AET Aetna, Inc. AET After Extra Time AET Actual Evapotranspiration AET Alliance for Environmental Technology AET Alpha-Ethyltryptamine AET Applied Extrusion Technologies, Inc. ) announced today that as part of its drive to provide affordable health coverage to current and future customers, the company is taking actions to better align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. its resources and reduce administrative expenses. These actions, which include streamlining management levels, are aimed at moving resources closer to the customer. They will result in a fourth quarter charge of approximately $20 million, after tax, related to severance costs. About 2 percent, or approximately 650, of the company's total workforce of 30,000 will be affected, including nearly 200 employees in management positions. The result will be increased flexibility, more efficient business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets and a commitment of resources to areas with a greater potential for future growth. "These actions are focused squarely square·ly adv. 1. Mathematics At right angles: sawed the beam squarely. 2. In a square shape. 3. on our future, and making certain that Aetna is well positioned to take advantage of new opportunities with an efficient and flexible customer-focused operating structure," said Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Ronald A. Williams. "As I begin my tenure as chairman, we remain focused on continuing to improve our organization with an emphasis on profitable growth. Aetna has established a strong track record of improving our efficiency, while maintaining exceptional levels of customer service and investing for the future. Our goal remains to become the industry leader. I view these actions aimed at efficiency and simplification as necessary in a dynamic business environment." "Aetna has been taking actions over the past several years to operate more efficiently, while at the same time investing heavily in new products, technology and customer service in support of profitable growth and marketplace differentiation," said Senior Vice President and Chief Financial Officer Alan M. Bennett. "While we continue to be pleased with our financial performance for 2006, we believe that today's action will help the company achieve a more competitive cost structure for the future. Although this is very difficult for those affected, these actions will help assure our continuing long-term success in the marketplace." Aetna is one of the nation's leading diversified diversified (di·verˑ·s health care benefits companies, serving approximately 29.9 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health Behavioral health was first used in the 1980's to name the combination of the fields mental health and substance abuse. As an example, an organization serving both mental health and substance abuse clients might refer to its practice as behavioral health or , group life and disability plans, and medical management capabilities. Our customers include employer groups employer group Association of employers Managed care An entity with a current group benefits agreement in effect with a health plan to provide covered health care services to its employee-subscribers and eligible dependents. , individuals, college students, part-time and hourly workers, health plans and government-sponsored plans. www.aetna.com |
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion