Philips Healthcare Loses CEO to Quest; Quest Says Goodbye to Longtime Leader

Philips Healthcare Loses CEO to Quest; Quest Says Goodbye to Longtime Leader

Philips Healthcare has been experiencing a drawn-out spate of staffing changes recently, as Royal Philips Electronics CEO Frans van Houten continues to shuffle the deck. In an effort to breathe new life into the company he has led for the past year, van Houten has been hiring, shifting, and hemorrhaging staff almost non-stop. The healthcare and lighting divisions of Philips have been affected the most by government and consumer spending cuts and therefore have seen the most staff changes.

Quest Diagnostics Inc. plucked Steve Rusckowski from his former position as Philips Healthcare CEO to replace its own outgoing president and CEO Surya N. Mohapatra, PhD. Rusckowski resigned of his own volition, to be clear, but his departure was not the first in van Houten’s string of changes.

In truth, Philips Healthcare did well under Rusckowski’s tenure as CEO. Company revenues increased from approximately 6 billion euro in 2005 to approximately 9 billion euro in 2011, accounting for roughly 39 percent of Philips consolidated revenues, up from 21 percent when he became CEO. In a note to clients, analyst Sjoerd Ummels of Dutch global financial institution ING said, “[Rusckowski’s] sudden departure is a setback.”

In an April 11 press release, Quest highlighted its enthusiasm over Rusckowski’s decision to join the company.

“He has built an enviable track record in healthcare by successfully driving growth, both organically and through disciplined, effective acquisitions,” said Daniel C. Stanzione, Ph.D., lead independent director at Quest and soon to be non-executive board chairman.

Deborah DiSanzo

Ten-year Philips veteran Deborah DiSanzo will replace Rusckowski, moving up from general manager of patient monitoring. Prior to Philips, she held various executive positions at Hewlett-Packard (HP), including general manager of cardiac resuscitation. DiSanzo joined Philips in 2001 and became CEO of healthcare informatics and patient monitoring in June 2008. In 2010, she took over as CEO of the company’s patient care and clinical informatics unit. She faces the same ongoing challenges that prompted the CEO staffing shuffle in the first place—declining demand from hospitals. Between declining U.S. demand and the European debt crisis, she has her work cut out for her, but most industry observers believe she is up to the challenge.

“She has done a really good job in making the Philips monitoring systems and clinical diagnostics business a clear global leader,” said Martin Prozesky, an analyst at Sanford C. Bernstein and Co. Inc. in London.

Mohapatra, Rusckowski’s predecessor at Quest, has worked with the company since 1999. He has had a long career in the medical technology industry—prior to joining Quest as senior vice president and chief operating officer, he was senior vice president of Cleveland, Ohio-based medical imaging technology firm Picker International Inc., where he held various executive positions over his 18 years.
Mohapatra was appointed president and chief operating officer of Quest in June 1999, CEO in May 2004, and chairman of the board in December 2004. Rusckowski will replace him on the board.

Rusckowski, 54, held several positions at HP and Agilent Technologies Inc. (then owned by HP), only moving to Philips when the company acquired Agilent in late 2000. He earned his Bachelor of Science degree in mechanical engineering from Worcester Polytechnic Institute in Worcester, Mass., and a Bachelor of Science degree in management from the Massachusetts Institute of Technology’s Sloan School of Management in Cambridge, Mass.

CEO of Cardinal Health Leaves, Company Snags JNJ Executive
Cardinal Health, based in Dublin, Ohio, has named former Johnson & Johnson (JNJ) executive Donald M. Casey Jr. as its new medical segment CEO. Casey joins Cardinal from the Gary and Mary West Wireless Health Institute in La Jolla, Calif., where he served as the company’s first CEO. Prior to that, he spent 24 years at JNJ, where his most recent position was worldwide chairman of JNJ’s Comprehensive Care Group, including its cardiovascular, diagnostic, diabetes and vision franchises.

Donald M. Casey Jr.

“His track record of commercializing innovation, deep operational expertise and outstanding strategic leadership will be tremendous assets as we continue to grow our core businesses and expand our footprint,” Cardinal CEO George Barrett said of Casey in a statement.

Casey joined the sales and marketing department of JNJ-owned McNeil Consumer Products in 1985. Over the next 20 years he advanced through the corporate ranks, achieving the titles of company group chairman of LifeScan and Animas Corp., group chairman and president of the Vision Care Franchise, president of the Johnson & Johnson-Merck joint venture, and president of eJNJ. He holds a bachelor’s and master’s degree from the University of Notre Dame in South Bend, Ill.

Casey officially began his position as CEO of Cardinal’s medical products and services business on April 16th. His predecessor, Mike Lynch, will work with him for several weeks to ensure a seamless changeover. Lynch will continue in an advisory capacity until September, according to the company.

Mike Lynch

At age 51, Lynch isn’t at the retirement stage yet—he is leaving to pursue his ambition to lead a company in the Chicago, Ill., area. He has served as CEO of the Cardinal medical division since August 2009, and has held various positions with the company including president of glove products and group president of medical products manufacturing. He is a graduate of Cornell University in New York, N.Y.







Endologix Chairman to Retire
Endologix Inc. in Irvine, Calif., is losing its chairman of 15 years, Franklin D. Brown. He officially will retire May 24, the date of the company’s annual shareholder meeting. Taking his place as board chairman is John McDermott, who also serves as the company’s CEO.

The outgoing chairman began his executive career in the medical technology industry in 1986 with Pharmacia Deltec Inc., an ambulatory drug delivery company, where he served as president and CEO. Pharmacia was sold in 1994 to the UpJohn Company, and is now owned by Pfizer. That same year, Brown left to serve as president, chairman and CEO of Laguna Niguel, Calif.-based Imagyn Medical Inc. until its sale three years later to Imagyn Medical Technologies Inc., a developer and manufacturer of products for the urology, minimally invasive and general surgery, and gynecology markets. In 1997, Brown joined Endologix when it was still a private company, first as a director and then as CEO and chairman. He was elected executive chairman in January 2003.

Brown has distinguished himself in the field, earning industry recognition. In 1991, he received an Ernst & Young Entrepreneur of the Year Award for the Midwest region for the success of Pharmacia Deltec Inc., an ambulatory drug delivery company, and in 2001 was awarded Director of the Year for his contribution to corporate governance. He holds a bachelor’s degree from Western Michigan University in Kalamazoo and a master’s degree from the University of Michigan.

In a statement, Brown expressed confidence that Endologix would be in good hands with McDermott at the helm.

“I have been privileged to be involved in the success of Endologix and the timing of this announcement is consistent with my long-term plans for retirement,” he said. “The company has achieved strong growth and substantially enhanced its new product pipeline under the leadership of John McDermott and the current board of directors, giving me high confidence that the company remains in good hands.”

McDermott returned the compliment: “We would not be in the strong position we are today without [Brown’s] leadership and strategic guidance.”

McDermott has been CEO and president of Endologix since May 2008. Like Brown, his medtech career has spanned two decades. His specific experience in the vascular sector will continue to be a valuable asset to Endologix, a provider of vascular medical devices, going forward, according to industry analysts. He has, in the past, served on the boards of the Phoenix, Ariz.-based International Society of Endovascular Specialists and the Vascular Disease Foundation, based in Vienna, Va. He was president of C.R. Bard Inc.’s vascular division between 2002 and 2007, which is when he joined Endologix. Having earned his bachelor’s degree in finance from Western International University in Phoenix, Ariz., and having spent time as a broker, chief credit officer, and chief financial officer at various points in his career, he also is expected to bring financial savvy to the table when he assumes the job on May 24. McDermott also holds a master’s degree in marketing and international business from Western International University.

Pathfinder Names New President and CEO
Pathfinder Therapeutics has recruited former Medtronic Inc. executive Jim Cloar to serve as its new president and CEO. Pathfinder is the developer of an image-guided “GPS” device that enables physicians to guide the delivery of resection or ablation cancer in soft-tissue organs. Formerly the general manager of Medtronic’s navigation sector, Cloar has experience in the realm of image-guided devices.

Jim Cloar

He joined Medtronic in 1997 and worked his way up mainly in the spinal and biologics businesses. His most recent position there was as vice president and general manager of the thoracolumbar spine division. His medical device career spans almost three decades—prior to Medtronic, Cloar spent time at DePuy Orthopeadics Inc. as general manager of territory, Smith & Nephew plc as senior product manager of trauma, and C.R. Bard Inc. as product manager in the urological division. He earned his bachelor’s degree in economics from Georgetown University in Washington, D.C.



The company hired Cloar just before it was scheduled to present its new image-guided liver surgical products at the American Hepato Pancreato-Billary Association conference held on March 8.

“With our team focus on research and development, as well as clinical and economic outcomes, we will provide our customers with increasingly effective planning and navigation tools to address patient needs,” said Cloar. “Pathfinder’s ability to increase the number of operable liver cancers using less invasive surgical procedures will help liver surgeons to save and extend lives while driving cost effective healthcare.”