Highmark Health Names Karen Hanlon as New CEO

Hanlon will assume the role on Jan. 1, 2027, succeeding David Holmberg, who has served as CEO since 2014.

Highmark Health has appointed Karen Hanlon as its next chief executive officer, making her the first woman to lead the Pittsburgh-based nonprofit health system. Hanlon will assume the role on Jan. 1, 2027, succeeding David Holmberg, who has served as CEO since 2014.

Holmberg will transition to executive chairman, where he will work with Highmark Health and its board, according to the organization.

Hanlon has spent nearly three decades at Highmark and has held several senior leadership positions, including chief financial officer, chief operating officer, and president. She joined the organization in 1997 after working at accounting firm KPMG and initially held finance roles.

She became Highmark Health’s CFO in 2014 and served in the position for four years before moving into the COO role. In 2025, she was appointed president, a position she will continue to hold alongside her new CEO responsibilities.

According to Highmark Health, Hanlon has overseen the organization’s expansion during her tenure, with revenue increasing from $17 billion in 2014 to a projected $35 billion in 2026.

Her appointment follows the board’s long-term succession planning process. Holmberg said Hanlon has a deep understanding of Highmark’s operations and has built relationships with employees and stakeholders during her tenure.

Hanlon will take over as Highmark Health faces financial pressure in its insurance business. More than 80% of the organization’s revenue comes from its health plan segment, while the remainder is primarily generated through Allegheny Health Network, its health system in western Pennsylvania.

Highmark’s health system improved its financial performance in 2025, reporting an operating profit for the first time since 2019. However, its insurance business has faced rising medical costs and broader pressures affecting health insurers.

The health plans, which serve approximately 7 million people, reported a $609 million operating loss in 2025. Highmark has said changes to its products are expected to support a recovery in 2026. Earlier this year, S&P downgraded Highmark’s credit outlook from “stable” to “negative.”

Stay tuned for more such updates on Digital Health News