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WellPoint just announced that it has forced the resignation of David Colby, its chief financial officer, after an investigation uncovered undisclosed violations of the firm’s code of conduct.

It is disappointing, I imagine, for their incoming chief executive officer, Angela Braly, to have one of the first announcements under her watch be so embarrassing.

The company wouldn’t discuss the actual (alleged) misconduct, only saying that Mr. Colby’s conduct was not “illegal” and that “the policy violations were in no way related to the business of WellPoint.” I can only imagine that means the conduct must have been personal in nature?

Ms. Braly, outgoing chairman and chief executive Larry Glasscock, and WellPoint’s board asked for, and received Mr. Colby’s resignation.

I guess this is one example of accountability amongst healthcare “leaders.” Amazing what happens when an accountable board holds its executives accountable, no?

Update: Reuters has some even more bizarre details…

“Given the nonbusiness nature of the violations, the company will make no further comment on the circumstances resulting in the resignation,” WellPoint said in a news release.

Management during a conference call with analysts declined to take questions regarding the specific circumstances regarding Colby’s resignation, but said no other employee resigned in connection with Colby’s departure.

“I fully expect the rest of our management team to remain together,” incoming Chief Executive Officer and President Angela Braly said. She confirmed the accuracy of WellPoint’s financial statements and its outlook.

Larry Glasscock, the company’s current CEO and president, added that the action “in no way related to the CEO transition.”

Asked if management expects to be sued as a result, Glasscock said, “Dave Colby will do what’s right for Dave Colby.

“I believe we absolutely did the right thing based on where the facts led us,” he said.

Really, really bizarre. Needless to say, WellPoint’s shares are down nearly two percent so far this morning, as their shareholders are probably scratching their heads in bewilderment and bemusement (probably botherment, too, but no bewitchment, as far as I can tell)…

Another update… Honestly, this is sad. Bloomberg leads their article by pointing out that Mr. Colby was “named the best health insurance CFO each of the past four years by Institutional Investor magazine.”

What I found especially interesting, though…

The former finance chief was treated as any other employee would have been, Glasscock said.

“What’s really important is that all of us read and agree to abide by the code of conduct,” Glasscock said. “We don’t have double standards in the company. We have one set of standards that apply to everyone.”

That does it. I’m sold. Larry Glasscock wants to retire. He shouldn’t be allowed. Instead, I think he needs to become chief executive officer and chairman of Kaiser Foundation Health Plan.

This story was originally posted at justendeal.com.

Kaiser Permanente reported its first quarter financial results late Friday. You’d be hard-pressed to find any actual coverage of the results, but if any newspaper cared enough to cover the financial health of the largest not-for-profit healthcare provider in the country, it would go something like…

Kaiser Foundation Health Plan and Hospitals, the largest not-for-profit healthcare provider in the country, on Friday reported first quarter financial results that showed revenue surging 9% to $9.4 billion from $8.6 billion one year ago, as membership growth plummeted over 60%. Profit, on a net income basis, came in at $698 million, compared to $448 million in the year-ago quarter, largely the result of the organization cutting $130 million from spending on medical equipment, hospitals and facilities, and other capital investments. HealthConnect, the controversial computer project to try to digitize patient records being pushed by Kaiser’s CEO, continued to consume a large portion of the healthcare provider’s resources, as critics say the unreliable project is both a threat to patient safety and a drain on the organization’s resources.

Perhaps unsurprisingly, the organization chose not to publicly report, at all, operating income or operating margin. My post last week pointed out that Kaiser Permanente’s growing reluctance to report results on an operating basis make discerning the organization’s true financial health difficult.

I suppose that’s the point.

This story was originally posted at justendeal.com.