Charles Miller, 60, president and chief operating officer at Houston-based Paracelsus Healthcare Corp., will retire July 1, the company said last week.
Until the company finds a replacement for Miller, James VanDevender, 51, will serve as interim chief executive officer. VanDevender will keep his current responsibilities as senior executive vice president and chief financial officer.
Miller's retirement came less than a week after the company reached a settlement in shareholder lawsuits filed in October 1996, soon after the company merged with Champion Healthcare Corp.
The company has agreed to pay about $14 million in cash and contribute about 1.5 million newly issued shares of common stock to shareholders in the lawsuit. The settlement is to be financed primarily with proceeds from the company's directors and officers liability insurance policies, said Deborah Frankovich, senior vice president and treasurer at Paracelsus.
The lawsuits claimed Paracelsus executives misrepresented the company's financial condition before the merger with Champion.
Paracelsus has not had a CEO since Ron Messenger left in April 1997, after the post-merger discovery of losses and accounting problems. The company now owns or operates 16 hospitals in nine states.