BioScrip CFO Jeff Kreger leaves at short notice

  • Signs for push-out forces
  • After less than two years on the job
  • Laud and praise for Kreger
  • Steve Deitsch taking over

(exechange) — Denver, Colorado, April 20, 2017 — Jeff Kreger, finance chief of BioScrip, leaves. It is a change at short notice. As announced by BioScrip, Inc. in a news release and in a regulatory filing published on Thursday, April 20, 2017, Jeffrey (Jeff) Kreger leaves the post as Chief Financial Officer at the provider of infusion and home care management solutions in a surprising move after less than two years on the job, effective April 24, 2017.

No company wants a CFO to flame out in the first years.

Kreger’s move comes seven months after Daniel E. Greenleaf took over as CEO of BioScrip, Inc.

Kreger’s duties are taken over by Steve Deitsch, most recently Chief Financial Officer at Coalfire, Inc.

The fact that Kreger’s successor is brought in from outside suggests that the board may seek to stimulate change with fresh ideas and new initiatives.

In general, an outsider doesn’t have the constraints of an insider when it comes to leading painful changes or making unpopular decisions.

No reason given

In the announcement, BioScrip did not explicitly explain the reason for Kreger’s imminent move, opening the door for speculation.

Precise information about the future plans of Kreger was not immediately available.

Wake-up call

Generally speaking, it is often an alarm signal for stockholders when a CFO leaves the position at short notice and without a reasonable explanation.

On April 20, 2017, BioScrip also reiterated its 2017 adjusted EBITDA forecast of $45 million to $55 million.

“Stepped down”

BioScrip said: Jeffrey Kreger “stepped down from his roles as Senior Vice President, Chief Financial Officer and Treasurer effective April 24, 2017.”

Share price decline

The change follows a sharp decline in the share price of BioScrip, Inc. since November 2016.

Gabelli holds 12.75 percent stake

Gabelli Funds, LLC reported a 12.75 percent stake in BioScrip, Inc. as of December 31, 2016.

Chaired by R. Carter Pate

BioScrip, Inc. is chaired by R. Carter Pate.

R. Carter Pate has been a director since May 2015 and serves as the Chairman of the Board.

CEO: Daniel E. Greenleaf

Daniel E. Greenleaf serves as CEO of BioScrip, Inc. Daniel E. Greenleaf has been the Chief Executive Officer and President of BioScrip, Inc. since September 9, 2016.

On the job as CFO since 2015

Kreger has been the Chief Financial Officer, Senior Vice President and Treasurer at BioScrip, Inc. since April 27, 2015.

Kreger joined BioScrip with over 25 years of experience in financial and executive leadership roles.

He most recently served as Senior Vice President of Finance with LHC Group Inc., a NASDAQ-listed post-acute healthcare services company.

In that role, he led a staff of over 300 personnel spanning all aspects of finance, accounting, treasury and information technology functions.

He was instrumental in the development and execution of LHC’s five-year strategic plan, led all corporate financing activities, and was actively involved in corporate development, overseeing the valuation, purchase, and integration of four large acquisitions in less than 19 months.

Prior to joining LHC Group in 2013, Kreger served as Senior Vice President and Corporate Controller at Sun Healthcare Group, a NASDAQ-listed post-acute care company with over 200 health care centers across 46 states and annual revenues in 2011 exceeding $1.9 billion.

He previously held senior finance roles at NYSE- and NASDAQ- listed companies including Consolidated Graphics and Philip Services Corporation.

He began his career with an eight-year term in the audit practice of Ernst & Young.

Kreger holds an MBA from The University of Houston, and a BBA in Accounting from the University of Texas at Austin.

He is a member of the Society of Louisiana Certified Public Accountants.

“Kreger will be working with the Company to ensure a smooth transition”, BioScrip said.

At the time of Kreger’s appointment as Chief Financial Officer at BioScrip, Richard M. Smith, then Chief Executive Officer and President of BioScrip, had said: “Jeff is a highly experienced and talented CFO with an outstanding background and leadership capabilities. His track record demonstrates an ability to build value and drive growth for healthcare services companies, and we look forward to working with Jeff as we continue to build upon our leading position in infusion while expanding into post-acute care services.”

Signs for push-out forces

It is not completely certain what forces eventually triggered Jeff Kreger’s imminent move.

The Push-out Score™ determined by exechange suggests that push-out forces may have contributed to the management change.

Read the full story in the exechange report 17.2017 ($).