Athenahealth CEO Jonathan Bush Steps Down Following Allegations About Misconduct Involving Women
The company said it has plans to explore a sale or merger following Jonathan Bush's departure. In other health care industry news, CVS names a post-merger executive team and Fortive offers to buy a Johnson & Johnson business.
Bloomberg:
Athenahealth CEO Bush Steps Down, Company Will Explore Sale
Athenahealth Inc. Chief Executive Officer Jonathan Bush is stepping down after a series of allegations about misconduct involving women, clearing the way for a potential sale of the $6.3 billion health-technology company he co-founded more than two decades ago. Bush, 49, a nephew of former President George H.W. Bush, had faced challenges on two fronts. Elliott Management Corp., an activist hedge fund, early last month proposed buying the company for $160 a share, saying it had been mismanaged and would be better off under private ownership. Then, last week it was reported by Bloomberg and others that Bush had faced complaints of inappropriate behavior with female employees, had physically assaulted his now ex-wife more than a decade ago and had made comments at a 2017 industry event about wanting to “jump down on’’ one of his female employees “and do inappropriate things.” (Ockerman and Deveau, 6/6)
Modern Healthcare:
Athenahealth CEO Jonathan Bush Exits Company
Athenahealth said in a statement that it is searching for CEO candidates. For now, Chief Financial Officer Marc Levine will take on additional leadership responsibilities. The company also named Jeff Immelt, former chairman and CEO of General Electric, as executive chairman.
"We approach this process with an open mind and a commitment to continuing to strengthen the company—including its rich data asset, platform strategy and culture of innovation," Immelt said in a statement. "We are fully focused on serving the best interests of our shareholders, employees and clients."
(6/6)
Modern Healthcare:
CVS Health Chooses Aetna Executives To Stay Post-Merger
CVS Health on Wednesday announced the management team chosen to lead the company after its merger with insurer Aetna closes. Under $69 billion deal, which was first announced in December and still must secure approval from state and federal regulators, Aetna will become a stand-alone business unit within pharmacy giant CVS. The deal is expected to close in the second half of 2018. Several Aetna executives were tapped for management roles at the combined company. (Livingston, 6/6)
The Wall Street Journal:
Fortive Offers $2.7 Billion For J&J’s Medical-Equipment Sterilization Business
Industrial-equipment maker Fortive Corp. FTV 0.89% has made a $2.7 billion offer to buy Advanced Sterilization Products from a Johnson & Johnson JNJ 1.08% unit. Fortive said Wednesday that the provider of sterilization and disinfection products would help it increase revenue and expand its positions in attractive markets, Chief Executive James Lico said in prepared remarks. (Barba, 6/6)
