Mark McKenna, president of Novation, has directed a sweeping reorganization of the group purchasing giant four months after taking over the management reins.
McKenna, 50, has reshuffled top management by naming three senior vice presidents, who report to him, to oversee most of the operations of the $12 billion group, and reconfigured the way Irving, Texas-based Novation goes about some of its most basic businesses.
Effective July 1, Novation has three key business units: operations, marketing and information services, and customer service.
"We've realigned organizational resources to address strategic issues, such as making better use of information technology and serving the needs of integrated delivery networks," McKenna said. The moves also cut the executives reporting to McKenna to six from 16.
All three groups are headed by longtime executives with the VHA hospital alliance who went on to hold key posts at Novation, formed Jan. 1, 1998, through the merger of the purchasing operations of VHA and University HealthSystem Consortium.
Novation named Eldon Petersen, 49, group senior vice president of operations, a position that includes primary responsibility for products and services contracting. Petersen retains his previous post as president of HealthCare Purchasing Partners International, a Novation subsidiary.
John Burks, 44, was named senior vice president of marketing, development and information services. Burks was previously a vice president of contracting and related functions.
In the final high-level appointment, Linda Knox, 45, was named senior vice president of service delivery, overseeing staff at headquarters and in the field. She previously was a vice president with similar but less extensive responsibilities.
McKenna also made other significant changes. Mike Love, for instance, was tapped to run a newly created group charged with developing new lines of business. Previously, Love served as architect of VHA's and then Novation's push into contracting for specialized medical-surgical products.
Novation has also decentralized contracting for distribution services, formerly overseen by Larry Dooley. Now distribution agreements are negotiated by the groups that contract for products and services. Dooley was named a vice president, responsible for contracting for medical-surgical products and several other areas.
McKenna became top dog at Novation in February after James Hersma resigned abruptly 13 months after becoming the group's first president.