Modivcare Inc. (Nasdaq: MODV) is about to embark on a leadership change.
The company announced late Tuesday that Dan Greenleaf is no longer serving as the CEO or a member of the company’s board of directors. In tandem, L. Heath Sampson was named interim CEO, effective immediately.
A search for the next leader of the company is underway, with the company’s board of directors leading the charge.
“In an effort to better serve our stakeholders and position the company as the leading supportive care provider in the nation, Modivcare has undergone a significant transformation over the last few years,” Chris Shackelton, chairman of the Modivcare board, said in a press release. “The board has determined that now is the right time to transition to our next phase of leadership. We are fortunate to have a leader of Heath’s caliber and experience step into the CEO role on an interim basis. Heath knows the company well, and we are confident he is the right person to lead Modivcare and help continue to deliver profitable growth.”
The Denver-based company is a provider of personal care, non-emergency medical transportation and meal delivery services. For context, in 2020, Modivcare acquired the personal care services provider Simplura Health Group for $575 million. In July of 2021, it acquired another personal care provider — CareFinders — for $340 million. Shortly after that, the company acquired the remote-patient monitoring platform VRI for $315 million.
“I appreciate the opportunity to serve in this role on an interim basis while the board conducts a search for Modivcare’s next CEO,” Sampson said in the press release.
Sampson previously was the CFO, serving in that role since early 2021. Before Modivcare, he was the CEO of Advanced Emissions Solutions Inc., where he “orchestrated a successful company turnaround and transformation,” according to the press release.
In January, Greenleaf himself spoke of the company transformation he led over the past few years at Modivcare. In particular, he touted its movement toward becoming an all-around social determinants of health company.
“That really was the catalyst for a lot of the decisions we made going forward,” Greenleaf said during a January presentation at the J.P. Morgan Healthcare Conference. “Our personal care business is now No. 2 in the country, and our remote monitoring is No. 2. We have also launched a nutritional meal delivery offering. We’ve partnered with a national organization on that front. There’s a significant unmet need in that area and a highly fragmented market.”
It seems clear, however, that the board is looking for some sort of change in direction, given the lack of a transition period.
Modivcare also brought on a new head of investor relations in May in Kevin Ellich. The company’s second quarter earnings call will take place on Thursday.
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