Executive Search Success Story: Executing a Confidential CEO and CFO Replacement to Reset an Off-Plan Healthcare Services Portfolio Company

How JRG Partners executed a confidential, dual-role North American executive search that equipped a private equity sponsor with a new Chief Executive Officer and Chief Financial Officer for an underperforming healthcare services portfolio company, replacing the incumbents discreetly, resetting strategy and financial discipline, and returning the investment to plan within eighteen months.

The Challenge

A private equity sponsor’s healthcare services portfolio company was two years into its hold and materially off plan: EBITDA was tracking 25% below the model, revenue cycle performance had deteriorated with rising denials and days sales outstanding, growth capital had been spent on de novo locations that underperformed, and the sponsor had lost confidence in both the CEO and CFO. The board decided both needed to be replaced, but the transition had to be managed without destabilizing clinicians, payers, or lenders. Executive leadership and the sponsor identified several critical vulnerabilities threatening the investment:

• EBITDA 25% below plan with lender covenant headroom narrowing
• Revenue cycle deterioration with denial rates and days sales outstanding well above benchmarks
• Underperforming de novo locations consuming capital without returns
• Loss of board confidence in the CEO and CFO, requiring simultaneous replacement
• Clinician, payer, and lender relationships at risk from a visible leadership disruption
• A remaining hold period requiring a credible, data-backed recovery before exit

Recognizing that the investment required new leadership installed discreetly and quickly, the sponsor’s operating partner and board engaged JRG Partners to run simultaneous confidential searches for a Chief Executive Officer and Chief Financial Officer, with a mandate to subsequently recruit a VP of Revenue Cycle under the new leadership. The sponsor required an executive search partner with deep healthcare services and private equity expertise and the discipline to manage dual replacements without disruption.

Why They Chose JRG Partners

Private Equity Portfolio Company Focus

JRG Partners maintains a dedicated practice serving private equity sponsors on confidential executive replacements and turnarounds, with a clear understanding of board dynamics, value-creation recovery, lender sensitivity, and the leadership profiles that restore investor confidence.

Confidential Replacement Discipline

Our firm has extensive experience managing discreet simultaneous replacements, protecting the organization, the incumbents, and external stakeholders throughout the process and coordinating announcements to minimize disruption.

Healthcare Services Expertise

JRG Partners possesses deep recruiting expertise across multi-site healthcare services, physician practice management, and outpatient care companies, ensuring an immediate understanding of revenue cycle, payer dynamics, de novo economics, and clinician engagement.

Our Executive Search Strategy

Phase 1 — Turnaround & Transition Planning

Our consultants partnered directly with the operating partner, deal team, and board to review financial and revenue cycle performance, de novo results, lender position, and transition sequencing. This review defined CEO and CFO profiles combining healthcare services turnaround leadership and private equity credibility, and a coordinated announcement plan.

Phase 2 — Talent Identification & Mapping

Our research team performed an extensive talent mapping initiative targeting chief executives and finance leaders at private-equity-backed and public healthcare services companies who had led documented turnarounds and plan recoveries. Over 390 executives were systematically assessed across these sectors.

Phase 3 — Confidential Candidate Engagement

Priority during outreach was given to leaders with a documented history of recovering off-plan portfolio companies, fixing revenue cycle performance, rationalizing growth investments, managing lender relationships through recovery, and retaining clinicians through leadership change. Outreach was conducted under strict confidentiality. Only candidates meeting these strict performance baselines advanced.

Phase 4 — Selection Process

Finalists presented turnaround plans to the operating partner and board, completed structured leadership assessments including joint sessions to evaluate CEO-CFO working dynamics, and underwent reference verification focused on quantified turnaround and sponsor outcomes.

Key Outcomes

• 390+ healthcare services executive profiles mapped across North America.
• Placed a new CEO and CFO simultaneously in 52 days through a confidential, coordinated transition.
• Reduced denial rates by 40% and days sales outstanding by 18 days.
• Secured a lender covenant amendment and restored headroom.
• Returned EBITDA to the investment model within eighteen months.
• Positioned the company for exit on the original timeline.