Health-Care Firm Reassigns President as Decline Expected
Comprehensive Care Corp., which this month is expected to report its first-ever annual earnings decline, said Monday that Dr. Richard Santoni, its president since February, 1985, has been reassigned to an executive vice president’s post.
B. Lee Karns, the company’s founder, chairman and president until early 1985, will reassume the presidency of the Irvine-based health-care company.
According to a prepared statement released late Monday, Santoni “will concentrate on new business development, as well as the “development of new patient attraction systems.” Robert L. Kasselmann, executive vice president in charge of special services, replaces Santoni as chief operating officer.
Karns could not be reached for comment Monday. Santoni, who was reached at home, declined to comment, except to say that the changes become effective immediately.
Comprehensive Care, whose drug and alcohol abuse treatment programs had made it one of the stronger performers in the health-care industry, recently has fallen on hard times, largely through too-rapid expansion of its facilities.
Last month, the company said net earnings for the fiscal year ended May 31 will be off by about 25% from net earnings of $17.2 million in fiscal 1985. A company spokesman said that while the company’s 1986 earnings will be off, “revenues will be up nicely.”
Comprehensive Care expanded its facili
ties by 30% during 1985, outstripping demand. The spokesman added that soft operating earnings will be further compounded by approximately $6 million in year-end write downs on its Brea psychiatric facility and on its licensing agreement with SmokEnders Inc.
Final figures are expected to be released in about a week.
For the fiscal third quarter, the last period for which figures are available, Comprehensive Care reported that net earnings fell 12% to $3.2 million from $3.7 million a year earlier, despite a 23% increase in revenues.
Comprehensive Care also said Monday that Dr. Edward Carels, formerly executive vice president in charge of communications will assist Santoni, while James Nicol, the company’s vice chairman, assumes the additional duties of overseeing the company’s communications department.
