NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- Alliance HealthCare Services, Inc. (NYSE:AIQ - News), a leading national provider of outpatient diagnostic imaging and radiation therapy services, today announced that Paul S. Viviano, chairman of the board and chief executive officer of the company, has resigned to be effective in June, 2012. Larry C. Buckelew, a company director since 2009, including serving as a member of the Audit Committee and the Compensation Committee, has been named chairman of the board and interim chief executive officer, to be effective immediately upon Mr. Viviano’s departure. Mr. Viviano is leaving the company to accept the position of associate vice chancellor for health sciences at the University of California, San Diego and chief executive officer of the UCSD Health System. Following his departure from Alliance, Mr. Viviano will continue to serve as a director of the company. Alliance also announced that Michael J. Shea has joined the company as chief operating officer effective June 4, 2012. In an unrelated development, Richard Hall has submitted his resignation as president of Alliance Oncology in order to accept a position as chief executive officer of a non-competing, New York-based company.
Mr. Buckelew has an extensive background as a healthcare director and executive. Mr. Buckelew served as president and chief executive officer of Gambro Healthcare, Inc. from November 2000 through October 2005. During this time period Gambro had more than $2 billion in annual revenues, 13,000 employees, and was ultimately purchased for approximately $3 billion. Prior to joining Gambro, Mr. Buckelew served in numerous executive and management positions, including positions with American Hospital Supply Corporation, Baxter International, Inc., Sunrise Medical, Inc., Teleflex, Inc., and Surgical Services, Inc.
As the new COO, Mr. Shea brings more than 30 years of healthcare industry business experience to Alliance, including senior executive roles in both private and public companies ranging from successful start-ups to established industry leaders. Prior to accepting this position, he was a senior vice president of operations at DaVita, Inc., a publicly held renal care company with more than $7 billion in revenues, operating 1800 dialysis clinics, and serving over 850 hospitals. Mr. Shea was responsible for DaVita operations in California, Nevada, and Arizona as well as being the senior executive in charge of DaVita’s Hospital Services Group. Prior to DaVita, he was the senior vice president of business development and marketing at TeamHealth, a publicly held outsourced physician services company that contracted with hospitals and physician groups, with revenues exceeding $1 billion annually. He holds Bachelor of Science and Master of Science degrees from Western Connecticut State University. Mr. Shea will report to Alliance’s chief executive officer.
“This was a very difficult decision for me, but ultimately it was time for me to return to academic medicine,” said Mr. Viviano. “It is remarkable that I am only the second CEO of Alliance since its inception in 1983. I am confident that Alliance will continue to achieve success with its restructuring plan aimed at improving efficiency, restoring growth to imaging services, and continuing the growth in radiation oncology services. Both Larry Buckelew and Mike Shea bring unique skills and experiences which will both enhance these initiatives and provide strong leadership in fulfilling strategic directives. I look forward to working with Mike and Larry as a member of the board,” said Paul Viviano.
Added Mr. Shea, “This is an exciting time for Alliance. I am delighted to have the opportunity to work closely with the executive team and board members, including Paul, in keeping the positive momentum going and creating new opportunities for growth.”
“We greatly value and appreciate the outstanding contributions Paul has made to the company since he assumed the role of chairman and chief executive officer in 2003, and we respect his decision to take his career in a different direction,” said Mr. Buckelew. “While his daily participation will be missed by this organization, we expect that there will be a smooth and orderly leadership transition in which Paul will play an active role.”
The company’s annual shareholder meeting will be held in Newport Beach, California on May 4, 2012.
The company plans to report its first quarter financial results on May 9, 2012. The company expects results to be in line with its full year 2012 guidance announced in its 2011 year-end earnings release on March 14, 2012.
About Alliance HealthCare Services
Alliance HealthCare Services is a leading national provider of advanced outpatient diagnostic imaging and radiation therapy services based upon annual revenue and number of systems deployed. Alliance focuses on MRI, PET/CT and CT through its Imaging division and radiation therapy through its Oncology division. With more than 2,300 team members committed to providing exceptional patient care and exceeding customer expectations, Alliance provides quality clinical services for over 1,000 hospitals and other healthcare partners in 45 states. Alliance operates 570 diagnostic imaging and radiation therapy systems. The Company is the nation’s largest provider of advanced diagnostic mobile imaging services and one of the leading operators of fixed-site imaging centers, with 135 locations across the country. Alliance also operates 37 radiation therapy centers, including 16 dedicated stereotactic radiosurgery facilities, many of which are operated in conjunction with local community hospital partners, providing treatment and care for cancer patients. With 16 stereotactic radiosurgery facilities in operation, Alliance is among the leading providers of stereotactic radiosurgery nationwide.
This press release contains forward-looking statements relating to future events, including statements related to the effect of the transition of leadership of the company, the company’s ability to achieve its strategic goals and realize the benefits of its organizational restructuring initiatives and the companies full-year 2012 guidance and expectation that its first quarter results will be in line with that guidance. In this context, forward-looking statements often address the Company’s expected future business and financial results and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks” or “will.” Forward-looking statements by their nature address matters that are uncertain and subject to risks. Such uncertainties and risks include: changes in the preliminary financial results and estimates due to the restatement or review of the Company’s financial statements; the nature, timing and amount of any restatement or other adjustments; the Company’s ability to make timely filings of its required periodic reports under the Securities Exchange Act of 1934; issues relating to the Company’s ability to maintain effective internal control over financial reporting and disclosure controls and procedures; the Company’s high degree of leverage and its ability to service its debt; factors affecting the Company’s leverage, including interest rates; the risk that the counterparties to the Company’s interest rate swap agreements fail to satisfy their obligations under these agreements; the Company’s ability to obtain financing; the effect of operating and financial restrictions in the Company’s debt instruments; the accuracy of the Company’s estimates regarding its capital requirements; the effect of intense levels of competition in the Company’s industry; changes in the methods of third party reimbursements for diagnostic imaging and radiation oncology services; fluctuations or unpredictability of the Company’s revenues, including as a result of seasonality; changes in the healthcare regulatory environment; the Company’s ability to keep pace with technological developments within its industry; the growth in the market for MRI and other services; the disruptive effect of hurricanes and other natural disasters; adverse changes in general domestic and worldwide economic conditions and instability and disruption of credit markets; difficulties the Company may face in connection with recent, pending or future acquisitions, including unexpected costs or liabilities resulting from the acquisitions, diversion of management’s attention from the operation of the Company’s business, and risks associated with integration of the acquisitions; and other risks and uncertainties identified in the Risk Factors section of the Company’s Form 10-K for the year ended December 31, 2010, filed with the Securities and Exchange Commission (the “SEC”), as may be modified or supplemented by our subsequent filings with the SEC. These uncertainties may cause actual future results or outcomes to differ materially from those expressed in the Company’s forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake to update its forward-looking statements except as required under the federal securities laws.
Alliance HealthCare Services
Richard W. Johns
Executive Vice President
Howard K. Aihara
Executive Vice President
Chief Financial Officer