In a sweeping change of leadership, Fort Myers-based cancer treatment group 21st Century Oncology replaced its board of directors and CEO Wednesday.
In a release, the company announced that Kimberly J. Commins-Tzoumakas will replace the outgoing CEO Paul Rundell, who shepherded the company through Chapter 11 bankruptcy after taking the position in February of last year.
The health care provider filed for bankruptcy back in May in an effort to try to shed over $500 million in debt and receive a $75 million infusion of equity from investors. Lawsuits have plagued the company over the last few years, including at least 13 federal class-action suits related to a data breach in 2015 that exposed the records of over two million patients. The company has also settled cases involving unnecessary bladder cancer screenings and falsified electronic medical records to receive government subsidies.
The US Bankruptcy Court approved the restructuring of the company earlier this month, allowing for an infusion of capital from its ownership, which includes a number of hedge funds like J.P. Morgan.
21st Century Oncology operates 143 treatment centers in the US across 17 states and another 36 located in seven Latin American countries. In Southwest Florida, the company has 12 offices under the 21st Century banner but also operates a number of urology, cardiac, and breast health clinics.
New interim CEO, Kimberly Commins-Tzoumakas, currently serves as the companies general counsel and is a shareholder in the Michigan office of law firm Hall Render. She was selected by the new board of director who were also appointed by the company’s ownership group Wednesday.
Board Chair Jeff Goldberg said that part of reason for the board selecting Commins-Tzoumakas was her role in the bankruptcy process.
“Kim has been a key part of the executive team for the past few years, and during the Chapter 11 process she was instrumental in achieving a resolution of various key issues that ultimately allowed us to obtain approval of the plan earlier this month,” said Goldberg. “Kim will provide important leadership, stability and continuity as we transition into the post-Chapter 11 phase and conduct a search for someone to fill the role on a permanent basis.”
The new board consists of: Goldberg, who serves as the chair of a number medical companies, Tom Gordon, chair of the board for DSL Construction, George Fulton Collins, CEO of Collins Capital, and Mark Stopler, CFO of RadNet Inc.,as well as two members who work for companies that own a large share of 21st Century; Nilay Mehta of Oaktree Capital Management, and Robert Cook of J.P. Morgan.
According to Commins-Tzoumakas, the post-bankruptcy restructuring will give the company the fresh start it needs moving forward.
“The successful financial restructuring provides a fresh start and an infusion of capital from our new ownership group, which demonstrates their confidence in the Company and its future,” said Commins-Tzoumakas. “We now have the opportunity to fully leverage the strengths of our business and the skills of our medical professionals and other employees. We are very grateful that our physicians, patients, partners and employees stood by us as we went through the Chapter 11 process.”
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