LifeCare Holdings, Plano, Texas, said W. Earl Reed III has resigned as chairman and chief executive officer to rejoin the Allegro Group, a Louisville, Ky.-based healthcare advisory firm.
William Hamburg, president of Interim Management Solutions, will serve as interim chairman and CEO. Hamburg, 58, has had experience serving as an interim executive. Previously he was the interim chief operating officer and interim chief development officer of HealthSouth Corp., Birmingham, Ala., during its management transition.
The Carlyle Group, a global private-equity firm, owns LifeCare, which operates long-term, acute-care hospitals in nine states.
The news of the 55-year-old Reeds departure is the latest in a string of high-level executive changes in the long-term-care industry. In mid-July, Regency Hospital Co., Alpharetta, Ga., confirmed its search for a new president and CEO, but said Rod Laughlin, the com-panys founder, president and CEO, will remain at the company.
This was weeks after Ron Drabik, Regencys chief financial officer, left to become the CFO at Policy Studies, a Denver-based outsourcing, technology and consulting-services firm. And in March, Michael Cress, CEO of Austin, Texas-based Cornerstone Healthcare Group, another long-term-care company, left his position to start his own consulting firm.
The turnover is a testament to the unstable regulatory environment in which the LTAC hospitals operate, rather than any commentary on the leadership of any particular CEO, said William Walters, CEO of the Acute Long Term Hospital Association.