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

Houston Methodist Hospital Enters Multi-Year Technology and Research Agreement With Siemens Healthineers
News | Imaging | August 17, 2017
Houston Methodist Hospital and Siemens Healthineers have entered into a multi-year agreement to bring cutting-edge...
Four Blue Cross Blue Shield Companies Issue Positive Medical Policies on HeartFlow FFRct Analysis
News | Computed Tomography (CT) | August 09, 2017
HeartFlow Inc. announced that four Blue Cross Blue Shield companies have each issued a positive medical policy for the...
The American Lung Association created LUNG FORCE, a national movement to defeat lung cancer
News | Lung Cancer | August 02, 2017
To raise public awareness of lung cancer—the leading cancer killer of men and women—the American Lung Association's...
GE’s DoseWatch is a digital informatics solution that automatically collects, monitors and reports on radiation dose indices for diagnostic imaging exams
News | Radiation Dose Management | July 31, 2017
GE Healthcare announced that it has licensed computed tomography (CT) organ dosimetry technology developed at Duke...
Contrast Media from Bayer, trends in contrast media and developments in contrast media
Feature | Contrast Media | July 28, 2017 | By Dave Fornell
Here are several updates in medical imaging ...
New York Hospital Finds Significant Cost Savings With Toshiba’s Aquilion One CT
News | Computed Tomography (CT) | July 25, 2017
In five years, Kaleida Health’s Stroke Care Center (SCC) at the Gates Vascular Institute in Buffalo, N.Y., has realized...
Samsung Introduces FDA-Cleared BodyTom Elite CT Scanner
Technology | Computed Tomography (CT) | July 24, 2017
Samsung announced U.S. Food and Drug Administration (FDA) approval of the BodyTom Elite, an upgraded version of its...
Sponsored Content | Videos | CT Angiography (CTA) | July 21, 2017
DAIC and ITN Editor Dave Fornell discusses some of the most innovative new computed tomography (CT) technology and tr
ACR Updates Radiation Oncology and Medical Physics Guidance With ASTRO and AAPM
News | Radiation Dose Management | July 19, 2017
July 19, 2017 — The American College of Radiology (ACR) recently collaborated with professional medical societies to
Sponsored Content | Videos | CT Angiography (CTA) | July 19, 2017
Matthew Budoff, M.D., FACC, professor of medicine, David Geffen School of Medicine at UCLA, endowed chair of preventi
Overlay Init