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Posted in 2012 contender | 0 comments

Quest Diagnostics Inc: Dr. Surya N. Mohapatra (CEO)

Why this was a big quit:   

Quest has been on an unpredictable acquisition spree with and after Athena and Celera. It’s also undergoing business restructuring.  Stable leaders are needed to focus on integrating already-acquired businesses and leveraging existing return on assets. Mohapatra was CEO at Quest for 8 years. He steps down at a timelaboratory service providers face increasing pressure from managed care companies to reduce testing costs, as well as uncertainty about potential government reimbursement cuts tied to health reform. Managed change in the best of times is hard enough. Leader transition during healthcare industry upheaval will have significant impact on the company.

Why this is not as big as our Top 10:

Quest struggles with revenue and did not prepare to integrate large acquisitions at the same time. It is true that Quest has undergone a lot of changes to boost company growth. The impact of Mohapatra’s resignation is not as great as the others’ in our picks. He agreed that it was time for the company to bring in a new leader with different perspectives.