Terry Stone
We always are very clear. We’re going to hire the best candidate for the job. And it’s always been my contention that if you’re looking in the right places with your eyes open, you will hire a diverse group of people.
Julie Murchinson
On this episode, Terry Stone from Oliver Wyman and Julie Murchinson from Health Evolution interview Pat Geraghty, CEO and President of Florida Blue. Pat offers a male perspective on Oliver Wyman’s Women in Healthcare Leadership 2019 report, which examines why so few females in healthcare make it to the top.
The Oliver Wyman Health podcast is brought to you by the global management consulting firm Oliver Wyman. Read our report at oliverwyman.com/womeninhealthcare and check out our online healthcare publication, health.oliverwyman.com.We invite you to subscribe so you’re notified whenever a new episode goes live. Thanks, and enjoy today’s show.
Terry
Oliver Wyman has done some pretty incredible research into diversity and inclusion at the leadership level, and some of their initial findings were that females make up about 30% of healthcare C-suite and 13% of healthcare CEOs. But when they looked at GuideWell Florida Blue, you’re well above average, with over 40% female C-suite representation. So, we would love to have you start off telling us a little bit about your journey, how you got there, and what the key really was in making that happen.
Patrick Geraghty
Representation of women in our leadership ranks is about 46%, and in the officer rank alone, it’s 40%. So, this is something that we were very purposeful about.
Terry
It sounds to me like this has been fairly intuitive for you personally and professionally along the way. Talk to me a little bit about the degree to which a specific strategy was put in place that the entire company rallied behind or how you structured really pushing this through at all levels.
Patrick
One of the things was having a meeting of the minds among the leadership team that this was important. But let me step back and talk to you a bit about how we looked at our diversity program in the first place. When I arrived at Florida Blue, we had a diversity department — literally, a dozen people who worked on diversity as a full-time activity. And in my view, they were good at securing for the organization recognitions like some outside awards that had been bestowed upon the organization for having a diversity department and for having programs. But when I looked at eight white males reporting to the CEO, my benchmark has always been about results and not activity.
We fairly quickly went about the business of disbanding the diversity department. And I had some employees associated with that department question my commitment. I was very clear with them — my commitment couldn’t be at a higher level. Diversity was going to be managed by the executive management team. I was going to chair that activity, and we would have regular discussions around diversity at my leadership team meeting as part of our regular agenda. It wasn’t a side activity; it wasn’t something that was compartmentalized; it was integrated into our business. It was serious, it was part of how we, as a leadership team, would address all issues. So not just gender diversity, but all of the diversity that we manage in our organization.
And so that was a critical first step in putting it right on the leadership team agenda as a regular activity. Next, I would say is we looked at our, what we called, employee resource groups, and frankly, most of them were doing things that I would say are cultural awareness as opposed to anything else. And what we did there was look at the level of activity and acknowledge it as a good first step, but also endorse that we were going to go much further than that.
And so what we’ve done with those groups is we’ve actually created GuideWell communities, and in those communities, we tasked them with bringing issues from the community they represent to the company, as well as bringing input, guidance, and direction from that community to our organization. We build products with input from GuideWell communities. We think about our advertising or any of the things we do in our business with input from these communities. The GuideWell communities here represent everything from the Latino community to women’s groups, military — because we have a very large military presence in our area — to LGBT communities, physically challenged, you name it. We use that as a way to educate our organization and to communicate back out to our communities.
So we structured a thorough governance around diversity in a very broad sense, and we made sure it was at the executive table. I think all of those moves demonstrated that we were very serious about diversity and how we would address it daily through our leadership team.
Terry
Pat, when you think about the time frame from the day that that diversity group was shut down to when you felt it was really working, how long did that take? And can you share an example of a time when you were surprised by an unintended consequence or excited by a moment when someone really understood the nuance?
Patrick
Well, frankly, it didn’t take long at all to start having impact. It certainly wasn’t as mature as it is now, and we’ve added better structure and more flow. But the aha moment for me came immediately. There was a young lady on our diversity team who wrote me an email with a tremendous amount of chutzpah, challenging my decision and thinking it was a complete turning away from diversity. I was so impressed with her email that I immediately picked up the phone, called her, and invited her to my office.
I was just two or three days into the job and I had her come to my office. She was essentially about to tender her resignation, but I explained my bigger vision around diversity. Not only did she turn the corner and become one of our best advocates, but she also got promoted multiple times here. She happens to be a young woman suffering from macular degeneration and losing her eyesight. She became the lead person in our organization for people with physical challenges and a spokesperson across that community. She helped us win numerous awards for legitimately accommodating people with vision challenges and other disabilities. She was so good at what she did that our company was recognized by the US Business Leadership Group as the winner nationally for companies under 100,000 employees for how we deal with people with physical challenges.
The bittersweet side of that story is that after taking us to those heights, Amazon hired her away to run that activity for them globally. Good for her — we’re thrilled. She’s a wonderful person. But it all came out of that original challenge we had. I saw her as someone young and passionate, willing to challenge the CEO in his first week on the job. I thought that was great, and I wanted to amplify it because it sent multiple cultural messages about openness to challenge, learning, and the fact that all sides can modify their positions based on new information. It was a great success story in the end.
Julie
That’s a great story. Part of what Oliver Wyman’s report uncovered are some pieces that don’t get talked about often — like implicit influences and trust issues. They found perceptions of good leadership differ greatly between men and women, often because of a lack of connection beyond professional relationships. Have you seen that kind of camaraderie or outside-of-work connection influence diversity efforts at Florida Blue?
Patrick
I’ve worked in environments where golf was a big cultural element, and the CEO I worked for played golf in a business setting. It was important to play golf with the boss, and it was a shared experience that gave some inside time. Women in those organizations definitely felt excluded as a result. I enjoy golf, but in the seven years I’ve been at Florida Blue, I’ve not played a round of business golf other than with clients or on occasion with a customer. I’ve made sure our gatherings are activities that everyone feels comfortable in, and I’ve explicitly eliminated exclusive practices. It’s important to be sensitive to activities that involve everyone so that all feel they have equal access.
Terry
When you think about relationships, do you believe companies should focus on fostering more connection? Or is that not as relevant?
Patrick
For me, it’s less about outside-of-work relationships and more about the initial experience of a leader and what they’re exposed to. I come from a family where gender-neutral chores and inclusive sports programs shaped my views. I believe broad exposure and understanding are key. Leaders need to understand their own biases, which is why we do regular training and self-reflection.
Julie
What reaction did you get when sharing examples of common practices that many men might not even realize happen?
Patrick
The discussion became more meaningful, with people realizing they need to think about these issues. It’s about awareness and reflection.
Terry
That’s consistent with what we see at clients. There’s unconscious bias, and trust is built through affinity. How do you see affinity and trust influencing leadership and diversity?
Patrick
We put our leadership team in diverse settings, like a recent lunch where everyone was together. We also have the GuideWell Leadership Academy, where high-potential individuals work on real projects in diverse teams, building camaraderie and relationships. This fosters respect and trust across the organization.
Julie
Is your diversity and inclusion work quota based or not? What’s Florida Blue’s philosophy?
Patrick
Never quota based. We focus on hiring the best candidate, sourcing from diverse pools, and making sure our organization reflects the communities we serve. We set no targets, only ambitions, and keep that front and center.
Terry
Looking back, what would you have done differently? Are there things you’d change?
Patrick
Every organization is different, but I believe leaders should come from backgrounds that give them broad perspectives on diversity. Having a partner like Amy, who shares that mindset, is critical. To change organizations without that mindset, you need to start at the top and shift perceptions about the value of diversity.
Julie
Do you see a difference in how diversity impacts organizational agility and product development? Any examples?
Patrick
Absolutely. For example, our approach to advertising now involves the Hispanic community early in the process, which has led to more inclusive messaging. Small changes like this, communicated authentically, make a big difference. It’s about everyday actions, not just big programs.
Terry
And how do you incorporate this into your retail centers and community engagement?
Patrick
We open retail centers with community input, tailoring activities to local needs — yoga classes, reading programs, partnerships with local teams. We also support community initiatives through our foundation, which grants millions annually. Leaders sit on community boards, ensuring we’re connected and responsive.
Julie
It sounds like inclusivity is at the core of your strategy, enabling diversity to thrive through a broad, participative approach.
Patrick
Exactly. We aim for an inclusive culture where diversity is a natural part of how we operate, making the environment better for everyone.
Terry
Thank you, Pat. This has been a fantastic conversation.
Patrick
Our pleasure. Thanks, and we’ll see you soon.
This transcript has been edited for clarity.