National Medical Health Card System, Inc. NMHC (NASDAQ), which provides PBM services to plan clients through its network of licensed pharmacies, has undergone a series of management changes over the last number of months. The most recent top management changes included changes in the CEO & President, CMO, General Counsel and CIO positions. The changes were supposedly based upon the recommendations made by NMHC's Chairman, Thomas W. Erickson who was just appointed the company's interim CEO & president and replaced James Smith. The recent changes were based on Erickson's work with the company since his selection to Board back on February 27th. Erickson, who shortly before his appointment to the board in February joined New Mountain Capital, LLC, the owner of the company's Series A Preferred stock.
Erickson previously played a role as CEO, interim CEO and chairman with six other businesses in the healthcare sector over the last 13 years. In the company's press release he stated, "today's actions commence what we hope will be an on-going process of cost and service improvements for our customers and shareholders." As mentioned above the other appointments were rather significant as well. Marty Magill the company's SVP for Sales became the Chief Marketing Officer for the company. George McGinn joined the firm to become the new General Counsel and Patrick Moroney became the interim Chief Information Officer.
It appears activist shareholders behind the scenes are playing a significant role in the company and are seeking to generate more value from the firm. Keep a watchful eye on how the changes implemented by the new team play out over the next few months.