Multiple sources indicate CEO Joe Delaney wIll be leaving OneCall Care Management after their search for a new CEO is complete.
Delaney has been head of the company during its ownership by APAX, tasked with growing the business, integrating multiple acquisitions, and delivering the profits needed to satisfy investors and debt service expense.
Conversations with other sources paint a picture of a company struggling to meet financial targets. Tough competition from smaller, single-focus companies plus payers’ desire to have multiple vendors competing for their business has made the work comp medical services industry brutally competitive. That, plus the structural decline in claim frequency and reports of customer service issues made Delaney’s job a difficult one indeed.
Don’t know who will be assuming the reins, but they will be stepping into a very high profile position.
Hefty prices were paid for Align Networks and OneCall (the diagnostic imaging company around which the conglomerate was built). Owner APAX may try to add more components, but things may well slow down while the transition occurs.
If things aren’t going according to plan, we may well see efforts to increase revenues and reduce expenses. That will play out in the near future…