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 LAGUNA HILLS, Calif., Sept. 8 /PRNewswire/ -- Community Psychiatric Centers (NYSE: CMY) today announced the resignation of its president and chief operating officer and the elimination of five regions as part of a management reorganization designed to further downsize the company and enhance cost-efficiency in an increasingly competitive environment.
 CPC's Board of Directors accepted the resignation of Loren B. Shook, who had served as president and chief operating officer since May 1992 and as a member of the board since May 1991. Shook, 42, joined CPC in 1973 as a hospital administrator and was named a regional director in 1978. He was appointed senior vice president in 1981, promoted to executive vice president in 1985, and named president of the U.S. Hospital Division in 1990.
 The company did not name a replacement for Shook, who will be pursuing other interests. At the time of his departure, he oversaw U.S. psychiatric hospital operations outside of California. These responsibilities are being assumed by Kay E. Seim, 46, executive vice president and previously head of the company's West Coast Hospitals. Seim returned to CPC in 1992 after serving as senior vice president and chief operating officer for Ramsay Health Care Inc. Prior to joining Ramsay in 1991 she spent 20 years with CPC, last serving as a regional vice president.
 Reporting to Seim will be the senior vice presidents heading up CPC's four new regions. Terrance R. Bridges, 39, will oversee the Southwest Region; Arthur M. Ginsberg, 37, will run the Northwest; Craig S. Juengling, 34, was promoted from vice president and will head up the Central Region; and Charles E. Smith, 49, formerly chief executive officer of CPC Parkwood Hospital in Atlanta, will oversee the East.
 Said Richard L. Conte, CPC chairman and chief executive officer, "Loren Shook made a tremendous contribution to CPC's development into one of the nation's leading providers of psychiatric services. I personally will miss Loren greatly, and wish him well in his future endeavors.
 "Looking to the future, I am confident that the management structure now in place is well-suited to the success of the company," Conte added. "as managed care firms and other payor groups continue to put downward pressure on pricing and utilization of inpatient psychiatric treatment, it is absolutely imperative for us to continue to streamline our cost structure to a level more reflective of the delivery of a lower-cost service and a smaller base of hospital operations."
 The reorganization does not affect CPC's United Kingdom division or its Transitional Hospitals Corp. (THC) subsidiary. The company currently operates 47 hospitals, including 37 psychiatric hospitals in the United States and Puerto Rico, seven in the United Kingdom, two freestanding long-term acute care (THC) facilities, and one hospital encompassing both psychiatric and THC operations. CPC's stock is traded on the New York, Boston, Midwest and Pacific exchanges.
 -0- 9/8/93
 /CONTACT: Suzanne S. Hovdey, 714-831-1166/

CO: Community Psychiatric Centers ST: California IN: HEA SU: PER

JB-MF -- LA044 -- 9998 09/08/93 16:54 EDT
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Publication:PR Newswire
Date:Sep 8, 1993

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