Retiring Blue Cross chief looks to his future

What's the most delicious part of a party? It's at the end, when it's time to relax and chew over the nuances of the night.

That's how it has been at Independence Blue Cross for the last year, although Joseph A. Frick and Daniel J. Hilferty, both being men, both being top executives, would likely not choose that metaphor.

"We had frequent, if not daily, recaps," said Frick, 58, in which each would share his perspective of the day's meetings and events.

That's because, at least since January, Hilferty, 53, has been chief-executive-in-training, preparing to take over when Frick retires in December. Frick announced his plans to employees on Aug. 31.

"E-mails, texts, phone calls, on the weekends," Hilferty said. "It does remind me of our sisters, a little bit."

"We even share weirded-out moments," Hilferty said.

Those happened when their colleagues seemed mystified about why both, in a case of executive overkill, were attending a particular meeting.

Frick, of course, is Independence Blue Cross' chief executive officer. It was his first CEO role, and he will have held the job for less than six years.

Before that, he rose through the ranks in human resources, an unusual path to the peak. Most chief executives have backgrounds in finance or operations.

Hilferty, on the other hand, "has that CEO pedigree," Frick said.

Hilferty served 13 years as president and chief executive of the AmeriHealth Mercy Family of Cos., which is jointly owned by Independence Blue Cross and Mercy Health System.

Independence Blue Cross has 3.3 million subscribers; AmeriHealth serves 6.5 million across 14 states. IBC's largest customer base is in five local counties. But by revenues, IBC is larger with $10.5 billion in annual revenue compared with $3 billion for AmeriHealth Mercy.

In January, in preparation for his takeover, Hilferty was promoted to executive vice president in charge of all of Independence Blue Cross' lines of business.

That is when he began to understand just how public Frick's job is. "We're a high-profile company," Frick said. With that comes other obligations and expectations.

Frick spent two years heading the Greater Philadelphia Chamber of Commerce and is now leading the 2010 United Way Campaign, a spotlight post for area executives.

"You can be out every night. How do you balance that?" said Hilferty, a father of five. His two daughters, the oldest, are grown. He has a junior in college, a high school freshman and a seventh grader - all boys.

"I won't give up anything with Joan and the kids," Hilferty said, almost fiercely, speaking of his wife.

Hilferty's wife has also been in training, getting tips from Frick's wife, Amy.

"Amy has been a true partner in my success and a key contributor to Independence Blue Cross," Frick said. (She does not work for the company - he meant that she plays an important support role.)

"Joan and Dan have the same relationship," Frick said. "Our wives get along. It was important for Amy to ensure that she could provide Joan as much perspective as possible."

When Hilferty takes over, Frick will remain connected to IBC as vice chairman of the board, a $35,000-a-year position. Other than that, he has no specific plans, just inklings, amid questions about why he is leaving.

Was it his health? Was he pushed? Was it his own decision?

His own decision, said Frick. "I have a lot of gas in the tank."

In 2007, Frick beat back late-stage colon cancer.

"Do I think about my own longevity?" said Frick, who habitually asks and answers his own questions. "Yes."

The cancer, and three subsequent years of good health, he said, provided an impetus for him to look beyond one company for a meaningful next step.

A few weeks ago, for example, he served broccoli rabe and ziti to families of cancer patients staying at Fox Chase Cancer Center's Hope Lodge. Frick found the experience deeply rewarding and said he would like to do more of that kind of activity as daily pressures lift.

Frick said that people have been talking to him about possibilities for professional life after Independence Blue Cross for years.

Some of the murmurings:

"Am I teaching at a college? Am I the dean of a business school?"

Or, "You were an H.R. rock star before you became CEO. Now you'll be an even more credible H.R. guy to do searches" for executives.

Or, "My daughter's dream has been to open her own boutique. It would be really meaningful to participate in some way, not to meddle."

Or, Italy. "Everyone always talks about their trips to Italy. Amy and I haven't traveled. It's all been kids and work."

Generally, he feels peaceful about his decision to leave. "Otherwise," he said in an interview shortly before he informed employees of his decision, "I'd be pretty whacked talking to you."

Frick said he did not expect to feel sad on his last day, but then he remembered his last day at The Inquirer and Philadelphia Daily News, where he headed human resources before joining Independence Blue Cross in 1993.

Driving home on I-95, he said, "I was so overcome with emotion that I had to pull over."

"What I need is intense personal contact," Frick said. "That's my biggest worry [about leaving], missing the intense contact I have with everyone, from the security guards who greet me in the morning.

"Who am I going to hang out with for 12 hours a day, except my family?" he said.

"I'm proud and calm today," he said, glancing at Hilferty, who had joined Frick in his office on the 45th floor of Independence Blue Cross' office tower at 19th and Market Streets in Center City.

"But you may be throwing me a lifeline in January."