Philips Loses Key Executive to Quest

Philips Healthcare CEO Steve Rusckowski has resigned to join Quest Diagnostics Incorporated as its new president and CEO, in a significant shift prompted by Royal Philips Electronics CEO Frans van Houten.

Ten-year Philips veteran Deborah DiSanzo will replace Rusckowski, moving up from general manager of patient monitoring. Prior to Philips, she held various positions at Hewlett-Packard (HP), including general manager of cardiac resuscitation.

Rusckowski also held several positions at HP and Agilent Technologies Inc. (then owned by HP), moving to Philips when the company acquired Agilent. In a press release, Quest highlighted why the company is enthusiastic about 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 chairman of the board.

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 approximately 39 percent of Philips consolidated revenues, up from 21 percent when he became CEO. In a note to clients, analyst Sjoerd Ummels of ING Brussels said, “[Rusckowski’s] sudden departure is a setback.”

Over at Quest, Rusckowski is replacing Surya N. Mohapatra, Ph.D., who has worked at the company since 1999. Mohapatra has had a long career in the medtech industry: Prior to joining Quest as senior vice president and chief operating officer, he was senior vice president of Picker International—a medical imaging technologies company—where he served in various executive positions during his 18-year tenure. 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 earned a Bachelor of Science degree in Mechanical Engineering from Worcester Polytechnic Institute and a Master of Science degree in Management from the Massachusetts Institute of Technology’s Sloan School of Management.

Philips has been experiencing major staffing changes recently under van Houten, and the CEO has announced more job cuts in the face of a declining demand from hospitals. DiSanzo is taking the helm of Philips Healthcare in an uncertain time.

Andover, Mass.-based Philips Healthcare is a provider of a variety of medical devices and technologies.

Based in Madison, N.J., Quest Diagnostics provides medical diagnostics testing services.