Dr Malcolm Parmenter says he is “honoured and excited” to be taking on the CEO role at Primary Health Care
Primary Health Care has named Dr Malcolm Parmenter, a former GP who became CEO of arch rival Sonic Clinical Services, to replace Peter Gregg as Primary’s top executive.
Dr Parmenter will take over the posts of chief executive officer and managing director of the major operator of medical centres in September. Mr Gregg will stay at the helm until then.
Rob Ferguson, chairman of Primary, said Dr Parmenter would bring to Primary a wealth of knowledge and practical experience in the operation of medical centres in Australia.
With degrees in medicine and surgery, Dr Parmenter has served two years as CEO of Sonic Clinical Services, after spending more than nine years as CEO of Independent Practitioner Network Ltd (IPN).
Dr Parmenter is credited with steering IPN’s profit recovery after taking control of it as a listed company in 2006 and with expanding its business mix since the takeover by Sonic Healthcare in 2008.
“Malcolm’s experience in healthcare policy regulation is extensive. He was most recently a member of the federal Health Minister’s Primary Healthcare Advisory Group on chronic and complex illnesses,” Mr Ferguson said.
Dr Parmenter said he was “honoured and excited” by the appointment.
“This company has a great footprint of healthcare assets in Australia. It is undergoing a strategic transformation while focusing on improving cash flow and return on investment,” he said.
“Furthermore, the healthcare sector in Australia remains one with strong underlying growth and real opportunities from innovation in technology. Efficient players who can both capitalise on the fundamentals and drive change will thrive.”
Mr Gregg stood down as Primary’s CEO in January, after the Australian Securities and Investment Commission filed charges over his alleged falsification of documents while he was a financial executive at construction giant Leighton Holdings, now known as CIMIC.
His tenure was also marked by the departure from Primary of James and Henry Bateman, the sons of founder Ed Bateman, both key executives who had been considered potential CEO material.
Under Mr Gregg, the beleaguered medical centre operator has started to explore mixed-billing practices and adopted a strategy of becoming a more GP-friendly employer by offering more flexible contracts and working hours.
However, GP recruitment has not matched the needs of its new rosters, weighing on profits.
According to a statement the stock exchange, issued by Primary, Dr Parmenter once practised in hospitals and medical centres in Hong Kong and Australia and joined IPN as a GP in 2000 from Endeavour Healthcare, where he was NSW Medical Director.
After the takeover by Sonic, Dr Parmenter established new businesses including Australia’s largest occupational medicine network. He currently leads a network of over 2000 GPs with annual revenue of around $400 million.
He has also been a member of the senior executive committee of Sonic Pathology.
