The backers of Quorum Health’s bankruptcy reorganization have picked a former investment banker and longtime consultant to be the seventh member of the company’s future board of directors.
Cathy Klema is being slated for Quorum’s board at the behest of the company’s debt holders, which are led by Davidson Kempner Capital Management, Goldentree Asset Management and York Capital Advisors. Klema has since 2001 run Nettleton Advisors, which she founded after working as a managing director in health care investment banking at what were then SG Cowen Securities from 1997 to 2001 and Furman Selz from 1994 until 1997.
Klema, 61, has been a director of several health care companies and has been a trustee of Montefiore Medical Center since March 2012. From 2000 to 2011, she was a board member of contract research organization Pharmaceutical Product Development and she joined the board of Watson Pharmaceuticals in 2004. Watson acquired private-label drug maker Actavis in 2012 and Allergan, the marketer of Botox among other drugs, in 2015 before running into trouble and pressure from activist investors and selling last year to AbbVie in a deal worth $63 billion.
At Quorum, Klema fills the last available board seat per the company’s post-bankruptcy organization. The company’s investors, who are aiming to complete their reorganization this month, in late April tabbed six others for seats. And while one of those seats is set aside for Quorum’s CEO, current boss Bob Fish is not earmarked to stay in his role and looks set to hand over the reins to either former Capella Healthcare CEO Dan Slipkovich or Joey Jacobs, the former leader of Acadia Healthcare.