After last night’s news, shares of Envision Healthcare (EVHC 44.03, -3.64 -7.6%) trade to all-time lows as the company is set to make organizational changes which include the realignment of the senior leadership structure under Christopher Holden, President and Chief Executive Officer, to reflect the company’s focus on its physician-centric strategic plan. In addition, EVHC announced the implementation of succession plans for its current Chief Financial Officer, Claire Gulmi, and President of Physician Services, Robert Coward and a $250 million share repurchase program.
The organizational changes include a realignment of the senior leadership structure under Christopher A. Holden, Envision’s President and Chief Executive Officer, to reflect the Company’s focus on its physician-centric strategic plan. As part of its ongoing efforts to enhance its scale, physician-centric strategy and operational excellence, EVHC has created the new role of EVP and COO. The EVP and COO will report directly to Mr. Holden, with responsibility for EVHC’s Physician Services and Ambulatory Surgery service lines. In addition, the company announced the implementation of succession plans for its current CFO, Claire Gulmi, and President of Physician Services, Robert Coward.
As a result, Karey Witty, a veteran healthcare executive with more than 25 years of experience in various executive, financial, and operational leadership positions, has been appointed to the new role of EVP and COO, effective October 2, 2017.
Also, Kevin Eastridge, currently Chief Accounting Officer, will succeed Ms. Gulmi as CFO, also effective October 2, 2017. Thereafter, Ms. Gulmi will be employed as an advisor to the company for one year to assist with the transition of her responsibilities to Mr. Eastridge. Kenneth Zongor, currently SVP - Financial Reporting, will succeed Mr. Eastridge as Chief Accounting Officer, effective October 2, 2017. And lastly, Brian Jackson, currently COO for the Physician Services Group, will succeed Mr. Coward as President of Physician Services, effective October 2, 2017.
Additionally, the company announced the authorization of a program to repurchase up to $250 million of its common stock. The company’s Board of Directors has decided to return capital to shareholders in a manner that will not affect EVHC’s strategy to reduce its leverage, drive execution across its combined platform, or pursue potential strategic, accretive acquisitions and investments that will drive growth and substantial value. The company’s 2017 acquisition spend through early August has totaled $620 million.