Home Finance specialist Akumin fires CFO in line with transformation plan

Akumin fires CFO in line with transformation plan


Diving Brief:

  • Akumin Inc., an outpatient diagnostic imaging services company, fired its chief financial officer William Larkin, effective Aug. 12 as as part of a two-pronged business transformation program, the company announced on Friday.
  • David Kretschmer is a world-renowned transformation specialist and will serve as the company’s interim chief financial officer effective August 12. The CFO has been a key player in other business transformations within the healthcare industry and sits on the board of SHACU, a special purpose acquisition company focused on healthcare, according to his LinkedIn account
  • The company, based in Plantation, Fla., is selling certain accounts receivable from its subsidiaries to a third-party buyer for about $30 million.

Overview of the dive:

Larkin was fired just before his first birthday at the oncology and radiology solutions provider. Prior to Akumin, Larkin served as CFO at a number of organizations including Alliance Healthcare Services what akumin acquired in September Southwest Dealer Services, Wildcat Discovery Technologies and Westport, according to his LinkedIn profile.

Akumin reported a net loss of $26.1 million on August 9, compared to a net loss of $6.9 million in the same period last year. according to an SEC filing. Attributing the shock to its acquisition of Alliance, the company also reported a 175.6% increase in revenue compared to the same period last year.

The acquisition allowed Akumin to operate in 46 states, with more than 1,000 hospitals and health system customers, 154 independent outpatient radiology centers and 34 radiotherapy centers.

Prior to assuming the interim role of CFO, Kretschmer led transformations for other companies in the healthcare industry. In addition to his new role, Kretschmer is a portfolio manager at Finite. He also served as Executive Vice President of Strategy and Transformations at Surgery Partners Inc., and Chief Investment Officer and Senior Vice President of Treasury and Corporate Strategy at Anthem Inc. for 26 years.

“The sale of certain accounts receivable has significantly improved our company’s liquidity through an immediate cash injection of approximately $30 million and a reduction in our days of outstanding sales of our accounts receivable,” the CEO said. Riad Zine said in the August 12 press release.

The program’s initiatives focus on operations, growth and capital, according to the release. The company’s goals for the program are patient access and experience, customer and partner engagement, financial stability and employee well-being, according to the press release.