PITTSBURGH—Highmark Inc.’s board of directors has terminated for cause Kenneth R. Melani, MD, as president and chief executive officer. He has served as the CEO since January 2003. The board had placed Melani on unpaid administrative leave on March 29, at which time it announced that J. Robert Baum, PhD, would serve as acting CEO in addition to maintaining his duties as Highmark’s chairman of the board. The termination stemmed from an incident on March 25 that resulted in Melani being arrested for defiant trespass and simple assault.

“The board has reviewed this situation thoroughly and has taken decisive action to address the matter,” said Baum. “For 75 years, Highmark has served this community with integrity and is committed to maintaining the highest standards.” While Baum will continue as acting CEO and board chairman, he said the board is moving forward to identify a long-term successor to the CEO position.

Reports published by the Pittsburgh Business Times have speculated on three potential successors—Deborah Rice, division president, health services and executive vice president; Dan Onorato, who was hired in January to head up government affairs and communications; and David Holmberg, CEO of HVHC, Inc., HM Insurance Group and United Concordia Dental.

As CEO of managed care company HVHC, Inc., Holmberg is responsible for the third largest U.S. optical retailer, according to Vision Monday’s Top 50 U.S. Optical Retailers. HVHC operates Visionworks, based in San Antonio, Texas, formerly known as Eye Care Centers of America (ECCA).