NovaCare Announces Two Major Executive Appointments; Timothy E. Foster Promoted to Chief
Executive Officer; James W. McLane of Aetna Appointed President and COO
KING OF PRUSSIA, Pa., April 29 /PRNewswire/ -- NovaCare, Inc. (NYSE: NOV),
a national provider of physical rehabilitation and employee services,
announced today two significant executive appointments effective immediately.
Timothy E. Foster has been promoted to chief executive officer (CEO) and James
W. McLane has been appointed president and chief operating officer (COO) and
will be a member of the board of directors, according to John H. Foster, who
remains chairman and a major shareholder of NovaCare.
"I am very pleased to announce the promotion of Tim Foster to chief
executive officer," said John Foster. "Tim has been instrumental in
establishing NovaCare as the nation's clinical leader in rehabilitation
services. During Tim's tenure as president and COO, NovaCare has established
the leading market position in outsourced rehabilitation services to the long-
term care industry and has positioned that business for success in a rapidly
changing reimbursement environment. Further, our Outpatient Division has
become the world leader in prosthetic research and technology and has expanded
to a national outpatient network of 750 physical therapy, orthotic and
prosthetic and occupational health centers.
"Tim forged relationships with leading health care organizations and
integrated health care delivery systems and helped NovaCare enter the
professional employer organization, or PEO, industry with the number two
market position," continued John Foster. "His leadership in repositioning and
refocusing NovaCare's core businesses has improved margins, captured increased
market share and enhanced shareholder value, which has contributed to the 120
percent increase in our stock price during the past 18 months. In our
respective roles as chairman and CEO, we will continue to expand and implement
NovaCare's long-term growth strategy to create increased shareholder value."
Prior to his promotion today, Timothy Foster, 45, has been president and
chief operating officer of NovaCare since October 1994, responsible for all
physical rehabilitation service businesses, integrated delivery systems,
occupational health services and the company's management consulting services.
He served as senior vice president, finance and administration and chief
financial officer from November 1988 to October 1994, and was senior vice
president of field operations from 1986 through 1988. He was a founder of
the business and has served on the board of directors since 1984.
James W. McLane Appointed President and Chief Operating Officer
"To sustain our growth and enhance our competencies, we are expanding
NovaCare's leadership team," continued John Foster. "We are pleased to
announce the appointment of James W. McLane as president and chief operating
officer. Jamie's consistent track record of innovative leadership and
profitable business growth in dynamic and fast-paced environments, as well as
his extensive experience in the health care services market, will help
accelerate the implementation of NovaCare's growth strategy."
Previously, McLane, 58, served as chief executive officer of Aetna Health
Plans and as executive vice president of Aetna Life and Casualty in Hartford,
Connecticut, where he managed all group health and life businesses,
representing revenues of $7.5 billion, 23,000 employees and 20 million plan
members. Aetna Health Plans was the top performer in the Aetna Group and
accounted for more than 50 percent of Aetna's total earnings.
"Having positioned Aetna as the nation's third largest managed care
company, Jamie knows how to serve both patients and institutional customers,"
said John Foster. "He has established relationships with a broad range of
health care providers and understands health care risk management. Jamie
knows how to market to smaller business customers, which are targeted by our
PEO. His business-building successes include the turnaround of Aetna's
underperforming HMOs, the growth of Aetna's disability and specialty health
businesses, and the start-up of both a physician practice management company
and an occupational health business. Jamie's skills are an excellent fit with
Tim's 13 years of entrepreneurial experience in rehabilitation services."
Tim Foster added, "As president and COO, Jamie will strengthen NovaCare's
managed care strategy and build customer relationships as we expand and
integrate our outpatient, occupational health and PEO businesses."
"NovaCare shares my commitment to patient advocacy and the highest quality
health care," said McLane. "Through the strategic vision of John Foster and
Tim Foster, NovaCare has become number one or number two in every business
segment it has targeted. NovaCare has the entrepreneurial drive and the
financial, managerial and values-based foundation for substantial growth in
health care and related fields, as well as a focus that is rare in corporate
America. Major opportunities for growth and profit exist in our industries.
I'm looking forward to helping NovaCare continue its impressive track record
of being one step ahead of the competition, while serving its customers as a
partner in health care and employee services."
Prior to joining Aetna in 1991, McLane spent 17 years at Citicorp in New
York City, where his positions included senior vice president and division
executive of both the Global Insurance and the Capital Investments divisions.
McLane is a nationally recognized health care industry leader. He has served
as a principal of the Jackson Hole Group, a prestigious national think tank
devoted to health care issues, and on the Executive Committee of the Health
Care Leadership Council, for which he co-chaired an industry task force on
Medicare reform.
McLane has recently served as chairman of Outward Bound USA, as director
of the Connecticut Governor's "Drugs Don't Work" Partnership, and on several
other health care related boards. He holds a bachelor of arts degree from
Yale University and a master's degree in business administration from Harvard
Business School. He served as an officer in the U.S. Navy in the Seventh
Fleet.
NovaCare, Inc. is the nation's clinical leader in physical rehabilitation,
operating 750 outpatient rehabilitation, orthotics and prosthetics, and
occupational health centers nationwide; and managing rehabilitation programs
in 1,900 long-term care facilities. NovaCare is the nation's largest employer
of rehabilitation clinicians with 17,000 employees across 43 states, treating
35,000 patients per day. NovaCare is also the nation's second largest
professional employer organization (PEO), providing expert employee services
to small and medium-sized businesses.
NovaCare has annualized net revenues in excess of $1 billion.
SOURCE NovaCare, Inc.
CONTACT: Susan J. Campbell of NovaCare, 610-992-7425 |
