With its recent announcement of new leadership, the Dallas-based group purchasing organization Broadlane took another step in what appears to be an ongoing effort to transform the company.
Broadlane shuffles deck
Ryan takes over as CEO, Sherry moves to president
David Ricker, a Broadlane founder, stepped down as president and CEO late last month after only 18 months in the top leadership position. Ricker, who will remain as a director, was replaced as CEO by Patrick Ryan. Ryan has served as the GPO’s board chair since May 2009. He will maintain his chairmanship, according to Broadlane officials.
The company also announced that Thomas Sherry, who was named chief operating officer in September 2008, was appointed president of the GPO.
The leadership shuffle follows two years of intense activity for the 11-year-old company. In June 2008, Broadlane announced that 53-hospital Tenet Healthcare Corp.—one of the GPO’s founding investors—and Falcon Mezzanine Partners II were selling their shares of the company to TowerBrook Capital Partners, a New York- and London-based private equity firm for an undisclosed amount. As a part of that deal, Broadlane’s then chairman and CEO, Charles Saunders, was replaced by Ricker, who was president and COO.
This past November, Broadlane bought Healthcare Performance Partners, a quality improvement and process management company, for an undisclosed amount. The acquisition was part of a strategic plan for Broadlane to expand services to its provider members beyond group purchasing services, said Paul Carmody, Broadlane’s senior vice president of product, marketing and strategy.
“From a strategic standpoint, we’ve refined our position a lot,” Carmody said. “We’re rounding out our ability to be a full partner to our members by bringing cost management into four areas: capital, supply-chain, operation and labor effectiveness.”
Carmody sidestepped questions about whether Ricker’s brief leadership and subsequent resignation were part of a long-planned strategic move to shore up the company while it worked to add services and become more competitive. But he acknowledged that Ryan was selected in large part because of his broad experience in healthcare. Ryan is a venture partner at SV Life Sciences, a healthcare technology investment firm.
Trevor Fetter, CEO of Tenet and a Broadlane founder, said he has not been privy to the GPO’s management and strategic plans since his company divested its shares—but chose to remain as a provider member—in 2008. He said he was uncertain whether Ricker’s leadership was conceived as transitional since Ricker took on the role of president and CEO shortly after Tenet sold its shares. But he says he feels comfortable with the changes.
“I wouldn’t approach this with suspicion,” Fetter said. “I trust the decision, and I don’t really have any concerns about this from a continuity or strategic standpoint,” he added.
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