O'Boyle out as CEO of HCA subsidiary Parallon

Parallon Business Solutions, a subsidiary of for-profit hospital operator HCA, said that the company decided to make a leadership change, and CEO Michael O'Boyle is out.

Asked to clarify the circumstances of the shuffle, a spokeswoman for Franklin, Tenn.-based Parallon deferred to an Oct. 30 memo to the staff from HCA President and CFO R. Milton Johnson that says the company “decided to make a change in leadership direction” and O'Boyle “will be leaving the company.” Parallon CFO Chris Taylor is serving as interim CEO while the company conducts a search for a replacement, the memo said.

Parallon is made up of several businesses that sell services such as group purchasing and revenue-cycle management to healthcare providers. The company recently paid $278 million to acquire the Outsource Group, a St. Louis-based revenue-cycle management firm.

“Parallon is a key component to HCA's success and to our future growth strategy,” the company said in the memo. During a call with analysts this week to discuss the company's earnings, Johnson said the Parallon business is “performing well” and is expected to grow.

O'Boyle has served as Parallon's president and CEO since January 2012. He previously was president of UnitedHealth Networks and COO of the Cleveland Clinic.

Follow Jaimy Lee on Twitter: @MHjlee