Many challenges ahead for Rusckowski because of healthcare’s unfolding transformation
Yesterday, after the stock markets closed, Quest Diagnostics Incorporated (NYSE: DGX) issued a press release naming Stephen H. Rusckowski as its new President and CEO. He will assume his duties on May 1, 2012. Quest Diagnostics is the nation’s largest clinical laboratory company.
Along with the appointment of its new President and CEO, Quest Diagnostics also announced that Daniel C. Stanzione, Ph.D., would become the Non-Executive Chairman of the Board for the Madison, New Jersey-based company. Stanzione has served as a Director on the Quest Board since 2004.
To ensure an orderly transition, Surya N. Mohapatra, Ph.D., the current Chairman, President, and CEO, will continue his duties through April 30, 2012. It was on October 25, 2011, when Quest Diagnostics disclosed a succession plan and stated that Mohapatra, now 61 years old, would serve for an additional six months as the company conducted its search for another CEO.
Quest Diagnostics Goes Outside Medical Laboratory Industry for New CEO
At 54 years old, Rusckowski comes to Quest Diagnostics with an interesting range of experience. He is leaving a position as CEO of Phillips Healthcare, a division of Royal Phillips Electronics (NYSE: PHG). He was appointed to the position in 2006 and also was a member of the Executive Committee and the Board of Management of Royal Philips Electronics.
Rusckowski has a track record in building businesses. In its press release, Quest Diagnostics wrote that “During Mr. Rusckowski’s tenure as CEO of Philips Healthcare, revenues increased from approximately 6 billion Euro in 2005 to approximately 9 billion Euro in 2011, accounting for approximately 39% of Philips consolidated revenues, from 21% when he became CEO. Philips Healthcare has 38,000 employees in more than 100 countries worldwide.”
Prior to his employment at Phillips, Rusckowski held executive positions at such companies as Hewlett-Packard, Agilent Technologies Inc., and MedQuist Inc. He currently serves as a Trustee at Caritas Holy Family Hospital, a 255-bed hospital in Methuen, Massachusetts. He holds a Bachelor of Science degree in Mechanical Engineering from Worcester Polytechnic Institute and a Master of Science degree in Management from the Massachusetts Institute of Technology’s Sloan School of Management.
As the newly-appointed President and CEO of Quest Diagnostics Incorporated, Stephen H. Rusckowski will assume his duties on May 1, 2012. He will lead the nation’s largest clinical pathology laboratory company at a time when the U.S. healthcare system is preparing for major reforms. (Photo copyright Quest Diagnostics Incorporated.)
Quest Diagnostics’ new President and CEO will immediately face a variety of challenges. For starters, in recent years, Wall Street investors expressed disappointment in the company’s financial performance. Quest Diagnostics has posted only modest rates of growth in specimen volume and net revenue during this time. Analysts and investors will look for early signs that Rusckowski is the leader who can put $7.5 billion Quest Diagnostics back on a sustained growth track.
Challenges in the Clinical Laboratory Testing Marketplace
However, for the pathologists and clinical laboratory managers whose laboratories compete daily against Quest Diagnostics, the more interesting questions center around what new strategies Rusckowski intends to introduce into the laboratory testing marketplace. Phillips Healthcare has a significant market share in such areas as radiology and imaging, health informatics, and a range of patient care/monitoring products. That gave Rusckowski experience in the types of clinical diagnostic services that are performed along with clinical laboratory testing.
How Rusckowski views the opportunities in clinical laboratory testing and anatomic pathology services will be closely watched—and not just by investors and Wall Street financial analysts. Pathologists and clinical laboratory managers whose organizations compete daily against Quest Diagnostics will be just as keenly interested to learn what new strategies and business initiatives Rusckowski implements at his new employer.
In many respects, this new CEO at the nation’s largest medical laboratory company has a blank slate to chart a new course. In so doing, Rusckowski has the potential to initiate innovative business initiatives that not only directly benefit Quest Diagnostics, but would be favorable to the profession of laboratory medicine over the long term. .
Quest Diagnostics Names Steve Rusckowski as President and CEO; Daniel C. Stanzione, Ph.D. is appointed Non-Executive Chairman of the Board of Directors
Quest Diagnostics Names Rusckowski as CEO
Quest Diagnostics Initiates CEO Succession Process: Surya Mohapatra to Remain Chairman and CEO to Ensure Smooth Transition
Quest Diagnostics isn’t the best company to work with. Everything the company talking about is a lie. I was so disappointed return to work, there’s no one care about how far you have to travel from home to work. I have repeatedly tried to get a transfer or apply for an opening in the area, but unfortunately was not able to do so. My first preference has always been to stay with the Quest family, but there just appears to be no way to transfer. There’s no way to contact employee HR dept, however, no one willing to help you. The supervisor and manager doesn’t help and care of you at all. Quest doesn’t PAY good at all and benefit were very bad. I wish there’s someone able to help me with all this questions. Much more to say about this company but who cares!
also- why are you wasting money on stupid liaisons who stop by the office when they are not able to offer any flexibility in dealing with old customers or offer any flexibility in what individual offices might require to optimize the clinic’s needs or to be able to see the bigger picture in approving a ridiculous extra $50 supliy request without having any a-preciation of how much money overall that those draws produce for Quest… i am currently looking for alternate companies to use instead of Quest and yet, Quest is quibbling about $50 q month, when it most of these draws generate about $1200-1400 each draw to Quest. You need to fire the supply operations person in nashville and hire someone who can appreciate what an individual physician draws generate per draw–