The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Wednesday, November 22, 1995           TAG: 9511220492
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
SOURCE: BY MARIE JOYCE, STAFF WRITER 
                                             LENGTH: Medium:   67 lines

SENTARA OFFICER TO RETIRE IN JANUARY

John E. ``Jack'' McNamara, one of the most visible leaders of Sentara Health System and an architect of the company's managed care strategy, will retire in January after nearly 19 years with the company.

McNamara is a vice president of Sentara Health System and president of Sentara Alternative Delivery Systems, the company's managed care insurance component.

He said he decided to bump up his planned retirement by 16 months to take advantage of a buyout the company is offering. McNamara, 57, said the buyout provided a better deal than he would receive through standard retirement in April 1997.

After Jan. 1, McNamara will work for Sentara as a consultant, continuing his role as liaison with other hospitals and health care companies. He also plans to do consulting work for other groups, working from an office in his Virginia Beach home.

No permanent replacement has been named. Ted Wille, chief operating officer for the company's managed care division and president of Optima Health Plan, has been appointed acting president of Alternative Delivery Systems.

McNamara came to Sentara in 1977 from the administrative staff of the Naval Medical Center in Portsmouth. He had earned his undergraduate degree from Cornell University and later received a master's in business administration from Old Dominion University.

He was working as an administrator at Norfolk General Hospital in 1984 when he was tapped to help start the company's first health maintenance organization, Optima. Now he oversees two HMOs and a mental health management plan.

``Mr. McNamara has been a major influence on the development of managed care programs inthis area,'' said Dr. Jock R. Wheeler, dean of Eastern Virginia Medical School, who has served on Optima's board.

At the time McNamara took over Optima - in what was supposed to be a temporary capacity - managed care was a new idea in Hampton Roads, and, McNamara said, he was as uninformed as most.

``I didn't have a clue. I thought this was kind of this California thing, kind of like California pizza,'' he said. ``Before, I passed over that literature in journals because it didn't apply to me.''

He started reading those articles and traveled extensively to examine companies in parts of the country with mature markets.

He also has served as a sort of ambassador for Sentara. The sweeping changes in health care haven't been embraced by everyone, and McNamara often has spoken for the company on controversial issues.

``That's one thing I will absolutely not miss,'' he said. ``We've done a lot of the pioneering stuff and we've taken hits.''

However, McNamara said, he will miss being at the helm at some of the changes planned for the future. Sentara is in the process of re-engineering to have a more streamlined, integrated organization.

He believes managed care will expand quickly to include more residents of Hampton Roads. Right now, he estimates, market penetration is about 16 percent.

``Five years from now, I'd be surprised if 40 percent of the market was not in HMOs,'' he said. ILLUSTRATION: Color photo

John E. "Jack" Mcnamara

KEYWORDS: PROFILE by CNB