News | June 04, 2008

Merge Healthcare Cuts Workforce, Names New CEO

June 5, 2008 - Merge Healthcare Inc. is reorganizing its business operations and making changes in executive management, according to the company.

The company is reorganizing and renaming its operating divisions. Merge Healthcare North America (MHNA) has been renamed Merge Fusion. Cedara, its operating division located in Toronto, Ontario, will be renamed Merge OEM.

Four top company executives, including Merge CEO Kenneth Rardin, CFO Steven Norton, Merge North American division President Gary Bowers and Cedara/Merge OEM division President Loris Sartor all have resigned. According to Merge, these officers are entitled to full severance benefits under their pre-existing employment agreements.

Justin C. Dearborn was named the company's new CEO. Since September 2006, Dearborn has served as managing director and general counsel of Merrick Ventures LLC ("Merrick"), an affiliate of Merrick RIS LLC.

Steven M. Oreskovich was tapped as the new CFO. Nancy J. Koenig was named president of the renamed Merge Fusion Division, while Antonia Wells was named president of the renamed Merge OEM Division.

Merge plans to cut approximately 60 people, reducing the total of employees down to approximately 300. The company anticipates that these reductions will result in a charge of at least $6 million in its financial statements for the second quarter ending June 30, 2008. The charge is expected to include at least $5 million in employee severance costs and at least $1 million in costs related to the early termination of office leases. Most of the severance costs will be payments to executives over the next 12 months pursuant to the terms of pre-existing employment agreements.

The company anticipates incurring additional non-cash charges during the second quarter ending June 30, 2008 associated with the reorganization. These non-cash charges include approximately $1 million of trade name impairment costs and approximately $2 million of stock-based compensation costs associated with the accelerated vesting of certain restricted stock and stock options of terminated employees.

For more information;

Related Content

Report Finds Identifying Patients for Lung Cancer Screening Not So Simple
News | Lung Cancer | June 18, 2018
New findings in the current issue of The American Journal of Managed Care suggest that getting the right patients to...
Weight-Bearing CT International Study Group Hosts  Scientific Session at AOFAS Conference
News | Computed Tomography (CT) | June 15, 2018
June 15, 2018 —The Weight-Bearing CT International Study Group will host a scientific session on the benefits of weig
Florida Hospital First in State to Adopt NeuroLogica's BodyTom Elite CT
News | Computed Tomography (CT) | June 14, 2018
June 14, 2018 — NeuroLogica, a subsidiary of Samsung Electronics Co.
Riverain Technologies Issued U.S. Patent for Vessel Suppression Technology
News | Computed Tomography (CT) | June 14, 2018
Riverain Technologies announced that the United States Patent and Trademark Office (USPTO) has awarded the company a...
360 Photos | 360 View Photos | June 14, 2018
This is a 360 degree image from the Canon Aquilion 64-slice...
American Society of Neuroradiology Honors Peter Chang with Cornelius G. Dyke Memorial Award
News | Neuro Imaging | June 13, 2018
Peter Chang, M.D., current neuroradiology fellow at UCSF and recently recruited co-director of the UCI Center for...
NewYork-Presbyterian Expands Mobile Stroke Treatment Unit Fleet

Image courtesy of NewYork-Presbyterian Hospital

News | Stroke | June 11, 2018
NewYork-Presbyterian, in collaboration with Weill Cornell Medicine, Columbia University Irving Medical Center and the...
Latest additions to Somatom go. CT platform address advanced clinical fields and applications, including cardiology, CT-guided intervention and dual energy CT. How to lower radiation dose from Computed tomography scanners using ned technology.

Latest additions to Somatom go. CT platform address advanced clinical fields and applications, including cardiology, CT-guided intervention and dual energy CT.

Feature | Computed Tomography (CT) | June 04, 2018 | By Melinda Taschetta-Millane
Recent studies show a rapid increase in patient radiation exposure mainly due to increased use of medical imaging, pa
Lung Decision Precision
News | Lung Cancer | June 04, 2018
For smokers and former smokers, the threat of lung cancer always lurks in the shadows.
American Cancer Society Updates Colorectal Cancer Screening Guideline
News | Colonoscopy Systems | May 30, 2018
An updated American Cancer Society guideline says colorectal cancer screening should begin at age 45 for people at...
Overlay Init