The start-up insurer Harken Health has changed CEOs while accumulating red ink in the troubled market for individual coverage.
Harken Health is a pilot project from health insurance giant UnitedHealthcare that combines coverage with easy access to primary care at company-owned clinics in Chicago and Atlanta.
A regulatory filing by the company in August showed an operating loss of $69.9 million through the first six months of 2016 and a "cash infusion" of $60 million from its parent company at the end of June.
In a statement to the Star Tribune on Friday, Harken Health said that founding chief executive Tom Vanderheyden "has transitioned out of his role." The subsidiary now will be led by Stevan Garcia, an executive with more than 25 years of health care leadership experience.
"With business progression often comes change," Harken Health said in the statement.
In a separate statement to the Star Tribune last month, a Harken official suggested other changes could be in the works as the insurer looks at "opportunities we have to evolve our offerings."
Harken Health is an independent subsidiary of UnitedHealthcare that's focused on the individual market, where self-employed people and those who don't get coverage from an employer buy policies.
The market includes new health insurance exchanges that were launched for 2014 under the federal Affordable Care Act but have been the source of financial losses for several insurers.