ChenMed, a family-owned company that operates 125 primary care clinics, tapped UnitedHealthcare veteran Steve Nelson as president to lead the day-to-day management and operations.
ChenMed is a physician-led, full-risk primary care company focused on providing services to moderate-to-low-income seniors with complex chronic conditions. The company hired Nelson in September 2022 to lead its JenCare Senior Medical Center business as CEO. Nelson's resume includes serving as co-chairman and CEO of Duly Health and Care, one of the largest multispecialty independent provider groups in the U.S. He also led UnitedHealthcare as CEO, contributing to its status as the largest Medicare Advantage business nationally.
"Steve's leadership experience will best position the company to achieve our ultimate goal of transforming health care for the better by serving more seniors in more places. It will enable us to leverage his exemplary track record and skill set to accelerate the impact of this transformational business," said Chris Chen, M.D., who will continue to serve as ChenMed CEO.
Business Insider reported Thursday that Dr. Chris Chen will step back from running the company to provide support, guidance and board governance, citing an audio of a company-wide meeting last week.
He said the family decided to step away because of "increasing pressure within the healthcare ecosystem and specific changes that have affected value-based care organizations like us," Insider reported. Chen mentioned upcoming changes to how the government pays for healthcare for seniors, according to the publication.
The publication reported that other Chen family members also are giving up their leadership roles, according to the audio recording of the meeting, including: Chris Chen's brother Dr. Gordon Chen, who serves as chief medical officer; his father, Dr. James Chen, the founder of the company; his mother Mary Chen, the chief market development officer; Stephanie Chen, the chief legal officer; and Dr. Jessica Chen, the chief clinical officer.
The ChenMed branded medical center chains – Chen Senior Medical Centers, Dedicated Senior Medical Centers, IntuneHealth and JenCare Senior Medical Centers – are located in 120 locations in 15 states. ChenMed also owns health tech company Curity.
Citing the audio recording, Insider reported that Chris Chen told employees the Chen family remains owners of the ChenMed company.
"As a family, as board members, and I, as CEO, have asked Steve and his team to assume responsibility for helping to take ChenMed to reach its highest potential in serving patients. Our company is strong. This proactive decision was made with confidence, strategic foresight and optimism that we will need in order to reach our aspirational goals," Chris Chen said.
A ChenMed spokesperson told Insider the company isn't making the leadership changes because it's under financial pressure, but rather "as a strategy to best position itself for the long-run in light of factors such as" changing government policy.
In a statement, Nelson said he will pursue a "founder-inspired strategy to steer and grow the company toward a distinctive future."
"The Chen family's vision and goals have already improved the lives of thousands of seniors who had never experienced the quality of primary and coordinated health care that they deserve. We intend to build on and expand the reach of the exceptional health outcomes and experiences the Chen family has delivered to its patients, while offering the best possible environment for our teams, and achieving sustainable business results," Nelson said.
ChenMed's roots go back to the 1970s when Dr. Jen-Ling James Chen opened his first primary care practice in Miami Gardens, Florida with the aim to offer affordable, human-centered care to medically underserved communities. The privately-held company now operates more than 125 senior medical centers in 15 states.
Care at ChenMed centers is described by the company as “proactive, preventative primary care.” The provider refers to itself as physician-led and seeks to serve moderate-to-low-income seniors with complex chronic conditions.
In February, the company announced a five-year network agreement with Humana to provide the insurer's Medicare Advantage members with in-network primary care at ChenMed facilities. The two companies began collaborating in the 1990s in south Florida, a partnership that has been bolstered by joint ventures in the last decade.
ChenMed and Humana created the JenCare Senior Medical Centers in 2011 starting in Florida. The centers quickly expanded beyond Florida and now operates in five states.