Financial Officer Named as CEO at IPS

IPS Health Care Inc., which in January named Andrew Galligan to oversee the fledgling firm’s finances, has given him the additional title of chief executive officer.

Galligan, 35, assumes part of the duties of company founder Todd Skulte, who resigned last month as chairman and chief executive after IPS lost nearly $3 million for its fiscal third quarter ended Jan. 31. Galligan joined the company as chief financial officer in January.

The company, which provides mobile magnetic resonance imaging services to physicians, had blamed its problems on “growing pains” and the recession. The firm is in default on various leases and owes the Internal Revenue Service $500,000 in payroll taxes, interest and penalties. It also has had problems collecting unpaid bills because of a new billing system.

“I’d like to blame (all of our losses) on the recession, but it is too convenient of an excuse,” Galligan said. He declined to comment on his plans for the company except to say that his goal is to “bring it back to profitability.”

The company, founded three years ago, reported revenue of $2.6 million for the third quarter, up from $2.4 million for the year-earlier quarter.

For the first nine months of its fiscal year, IPS lost $2.5 million on revenue of $8.9 million.

Galligan said the company is still in the process of selecting a new chairman to replace Skulte.