MAMSI fills top two jobs

Groban promoted to chairman

Barbera to president, CEO

April 27, 1999|By Robert Little | Robert Little,SUN STAFF

Mid Atlantic Medical Services Inc., a Maryland-based managed-care company whose chief executive officer resigned in January amid flat earnings and accusations of poor management, promoted two directors to the company's top executive positions yesterday.

Mark D. Groban, president of MAMSI's two preferred provider organizations, will become chairman, and Thomas P. Barbera, head of the company's Government Health Services division, will become president and CEO. Both have been serving in those positions on an interim basis for four months.

Groban and Barbera replace George T. Jochum, who resigned from the Rockville-based company after a move last year on the board of directors to oust him.

Five members of MAMSI's board filed a lawsuit late last year calling for Jochum's removal, accusing him of dishonesty in dealing with the board, poor financial management and unspecified personal misbehavior. The lawsuit was dropped after Jochum's resignation in January, and he was given a severance package worth as much as $5.8 million.

MAMSI is one of the largest managed-care companies in the region, providing health care to about 1.7 million people in the mid-Atlantic states. It is the holding company for four health maintenance organizations, two preferred provider organizations and four home-health companies.

The company earned $9 million in 1998, a decline from its $61.1 million profit in 1995. Its stock price has dipped as well, closing on the New York Stock Exchange yesterday at $7.1875, compared with $25.875 a share Feb. 6, 1995.

"I think the company as a whole has been kind of low-keying things until the transitional team had everything in place," said Gary M. Frazier, an analyst for BT Alex. Brown. "Maybe now we will start to see more of what the new direction will be like."

Groban, a medical doctor, joined the company in 1990, and Barbera joined in 1993. Both men were named to their new positions after Jochum's resignation, and their appointments were reaffirmed yesterday by a search committee of the board.

Pub Date: 4/27/99

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