Updated at 5:20 p.m. CST Jan. 28

Gov. Tom Vilsack on Friday officially named Mid-America Group president and chief operating officer Teresa Wahlert to replace John Forsyth on the Board of Regents.

Forsyth — former board president — resigned Jan. 20 from the board along with La Porte City Regent David Neil because of conflicts of interest over the University of Iowa’s contract with Wellmark Inc. In that contract, Wellmark reimbursed the University of Iowa Hospitals for treating Wellmark insurance patients. Forsyth is the CEO of Wellmark, and Neil was on the company’s board of directors until he resigned in December.

The governor issued a press release Friday morning confirming Wahlert’s appointment to the board.

“I am confident that Teresa will continue the strong momentum of change the Regents are currently engaged in,” Vilsack said in the press release. “She is a leader and a respected businesswoman who has the type of real-world experience we need to keep out Regents schools strong.”

He said her expertise will be an asset in helping the board expand educational opportunities for Iowans.

While with the Mid-America Group — a private development, construction and management company in West Des Moines — Wahlert has served as president and CEO of the Greater Des Moines Partnership, regional vice president of Qwest and was inducted into the Iowa Business Hall of Fame in 2004.

“I will work very hard and I will work to continue the transformational process John Forsyth started,” Wahlert said in a telephone interview. “I look forward to the opportunity to continue to furthering of educational excellence and the opportunity to look for ways for education to be more affordable to all Iowans.”

Statehouse Republicans have said they are concerned with the condition of the board following the recent shakeup and called for a full disclosure of the reasoning behind the departures.

Some legislators speculated that University of Iowa officials pressured Iowa Attorney General Tom Miller to place further restrictions on Forsyth’s role in the decision-making process concerning the Wellmark contract. Both Miller and University of Iowa spokesman Steve Parrott denied the allegations.

In November, after learning of the possibility that the U of I Hospitals would terminate their contract with Wellmark, Forsyth wrote a letter to Iowa Attorney General Tom Miller asking for legal advice and outlining potential conflicts.

Miller said Forsyth could still serve as board president, but added new restrictions to the scope of his duties as president. Miller said he should have no involvement as board president on any university hospital matter “whether Wellmark or not.”

Forsyth said the restrictions severely limited the scope of his fiduciary responsibilities as a regent and resigned.

Neil’s and Forsyth’s resignations stemmed from an emergency board meeting Dec. 29 during which the regents voted 5-2 to allow Iowa to have greater discretion in its negotiations with Wellmark.

As a result, the university decided to attempt to renegotiate a different agreement.

Neil stepped down from the Wellmark board to cast a “no” vote at the December meeting, leaving the regents shortly after.

The contract remains in effect unless U of I officials decide to officially terminate the contract or do not agree on a new contract before it expires Dec. 31, 2006.

For now, Wellmark patients, Iowa State and regents university employees will not see a change in their insurance plan and coverage.

Iowa City Regent and president pro tem Bob Downer will serve in the role of board president until the regents elect someone to fill the rest of Forsyth’s term.

Forsyth was elected president in 2004, with his two-year term ending in April 2006.

The Board of Regents consists of nine members who are appointed by the governor and subject to state Senate confirmation. Board members are appointed to staggered six-year terms.