CHICAGO--(BUSINESS WIRE)--Accretive Health, Inc. (NYSE: AH), today announced the appointment of two new independent directors to its Board of Directors. Robert Stanek, former president and CEO of Catholic Health East, and Alex Mandl, non-executive chairman of Gemalto and former President, COO and CFO at AT&T, joined the Board effective November 11, 2013.
“Bob and Alex bring a wealth of experience to the Board as we continue to strengthen Accretive Health’s position at the forefront of improving the effectiveness and efficiency of healthcare providers,” said Steve Schuckenbrock, President and CEO, Accretive Health. “Bob understands first-hand the pressures our clients face as the healthcare industry moves toward value-based care. Alex’s operational and financial expertise will be invaluable in supporting Accretive’s initiatives to improve operational execution, enhance client satisfaction and drive future growth.”
Additionally, Mary Tolan, current chairperson of the board, notified the Board of Directors on November 11, 2013, that she will not stand for re-election to the Board at the company’s next annual meeting of shareholders.
“Accretive Health is an organization of dedicated and passionate professionals committed to their clients and the quest for enhanced quality and affordability in healthcare,” Tolan said. “I look forward to the company's future success and contributions to healthcare innovation. With the addition of these two very accomplished directors and a great management team fully in place, I believe next year will be an ideal time for me to step down from my role as chairperson and director to pursue other business interests.”
Board Authorizes Share Buyback Plan
The Board of Directors also has authorized the repurchase of up to $50 million of the company’s common stock from time to time in the open market or in privately negotiated transactions following the restatement of the company’s financial statements.
“Accretive continues to have a fundamentally strong business model, and we have a clear vision for how to drive future growth,” said Denis Nayden, lead director, Accretive Health Board of Directors. “Given the management team's potential and its ability to execute, and consistent with the company’s continuing commitment to create shareholder value, this authorization will provide the ability to opportunistically make share repurchases as a component of its capital allocation strategy as well as to invest in future growth opportunities including internal and external investments. The company has no debt and we are confident in the company’s ability to generate sufficient operating cash flow to support investments in growth.”
The timing and amount of any shares repurchased will be determined by the company's management based on its evaluation of market conditions and other factors, including the completion of the company’s ongoing restatement. The repurchase program may be suspended or discontinued at any time. Any repurchased shares will be available for use in connection with its stock plans and for other corporate purposes.
The company currently intends to fund the repurchases from cash on hand. As of September 30, 2013, the company had approximately $220 million of cash and cash equivalents and 95.7 million shares of common stock outstanding.
Robert V. Stanek
Robert V. Stanek served as president and chief executive officer of Catholic Health East (CHE) from 2003 until his retirement in 2010. During his tenure, CHE was one of the largest Catholic health systems in the United States, with ministries located in 11 eastern states from Maine to Florida. The System included 34 acute care and four long-term acute care hospitals, numerous long-term care, assisted living, behavioral health, and home health and hospice facilities, as well as continuing care retirement communities and several ambulatory and community-based health services.
Stanek joined CHE’s Senior Management Team in 1997 as executive vice president of the Mid-Atlantic Division and then served as chief operating officer. He was promoted in 2003 to become the health system’s second president and chief executive officer. While at CHE, some of Stanek’s achievements included the realization of system synergies and efficiencies through shared IT, supply chain and financial services; a system-wide focus on clinical transformation and developing a person-centered system of care; and the development of CHE’s Preferred Health Care Delivery Model for 2017, among others.
Prior to joining CHE, Stanek served in a variety of capacities with the Mercy Health System of Western New York from 1992 to 1997, including president and chief executive officer, as well as chief operating officer/care delivery services. Before 1992, Stanek served in a number of administrative positions with the Daughters of Charity health care facilities in Pennsylvania and Virginia.
Stanek was elected to the board of trustees of the Catholic Health Association of the United States (CHAUSA) in 2006, which is the largest association of Catholic not-for-profit health care providers in the nation. Stanek earned a bachelor of arts degree in chemistry from East Stroudsburg University in East Stroudsburg, Pa.; a B.S. in pharmacy from the Philadelphia College of Pharmacy and Science; and an M.B.A. in administrative management from St. Joseph’s University, Philadelphia, Pa.
Alex J. Mandl
Alex Mandl is currently the non-executive chairman of Gemalto, a company resulting from the merger between Gemplus International S.A. and Axalto Holding N.V. From June 2006 until December 2007, Mandl served as executive chairman of Gemalto. Before the merger, Mandl was president, CEO, and a member of the Board of Directors of Gemplus, positions he held since 2002. Prior to that, he was a principal in ASM Investments, and chairman and CEO of Teligent, a company he started in 1996.
From 1991 to 1996, Mandl was with AT&T, where he served as President and Chief Operating Officer with responsibility for long distance, wireless, local communications and internet services. Prior to his President/COO position, he was AT&T's Chief Financial Officer. Mandl held various leadership positions in the transportation industry before joining AT&T. He began his career in 1969 at Boise Cascade Corp.
Mandl currently serves on the Boards of Gemalto, Arise Virtual Solutions and Genpact Limited. He also served on the Dell Inc. Board of Directors in several capacities, including Lead Director.
He holds an M.B.A. from the University of California at Berkeley and a B.A. in economics from Willamette University in Salem, Oregon.
Forward-Looking Statements
Statements in this press release regarding the company's intention to repurchase shares of its common stock from time to time under the share repurchase program, the intended use of any repurchased shares and the source of funding, and the company’s growth prospects, are forward-looking statements. There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, the timing of completion of the restatement process and related SEC filings, the market price of the company's stock prevailing from time to time, the nature of other investment opportunities presented to the company from time to time, the company's cash flows from operations, general economic conditions, and other factors identified in the company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the SEC, as well as other SEC filings.
About Accretive Health
At Accretive Health, our mission is to partner with healthcare communities to serve as a catalyst for a healthier future for all. For more information, visit www.accretivehealth.com.
