In a story worthy of a prime time serial drama, Highmark Inc. on April 1, fired its CEO Kenneth Melani, MD, for "cause" just four days after Melani was arrested for assaulting the estranged husband of a Highmark employee with whom Melani has allegedly been having an affair.
Melani, who has served as Highmark CEO since 2003 and has worked for the company for the past 23 years, was placed on unpaid administrative leave on March 29, the day after he was arrested on assault charges stemming from a confrontation with Mark Myler, the husband of Highmark employee Melissa Myler, at their Oakmont, Pa., home.
[See also: Highmark seeks to acquire cash-strapped West Penn Allegheny Health System]
The company announced at the time that its Board Chairman J. Robert Baum would serve as acting CEO in Melani's absence.
"We regret that this situation arose. The board is fully committed to Highmark's mission and the business strategies that will guide us going forward," said Baum in a March 29 statement announcing his appointment as acting CEO.
According to a company spokesperson, this commitment includes continuing to pursue its affiliation with local hospital health system West Penn Allegheny, to which Highmark has committed as much as $275 million to shore up the struggling health system.
[See also: Highmark, West Penn boards approve affiliation agreement]
But what was intended to be a short-term bridge to allow Melani to handle "personal issues" became a greater crisis as details of his affair with Myler began to come out.
According to published reports, Myler was hired by Highmark in October into a job that did not report directly to Melani and that the affair began shortly thereafter. Company management had even approached Melani about the poorly kept secret at the company and he reportedly denied the relationship.
Faced with a growing corporate scandal, the Highmark Board met April 1 and later that day announced it was dismissing Melani permanently.
"The board has reviewed this situation thoroughly and has taken decisive action to address the matter," Baum said in an April 1 statement. "For 75 years, Highmark has served this community with integrity and is committed to maintaining the highest standards …Our mission of providing quality, affordable healthcare has never been more important, and I'm looking forward to working with our employees and senior management team in addressing the many challenges and opportunities that lie ahead."
As a result of his firing, Melani has hired Pittsburgh-based employment attorney Samuel Cordes to examine the circumstances of his firing. Cordes told the Pittsburgh Business Times that the firing was retaliatory, though he didn't spell out what the retaliation was for.