LifeStance Health Group Inc. (Nasdaq: LFST) is revolutionizing its leadership team by appointing a new CEO and promoting a company veteran.
Effective September 7, former WellCare and UnitedHealthcare CEO Ken Burdick took over as CEO at LifeStance Health after stepping down from founding CEO Michael Lester. At the same time, COO Danish Qureshi will also take over as president.
The Scottsdale, Arizona-based hybrid mental health provider disclosed in a Securities and Exchange Commission (SEC) filing that Lester will provide consulting services to Lifestance Health through Alert5 Consulting LLC, his consulting firm, through September 7, 2023.
In the leadership reorganization announcement, LifeStance Health’s board of directors noted Burdick’s “deep understanding of the current healthcare landscape and a track record of profitable growth.” He also expressed his appreciation for Lester’s work.
“LifeStance is at the forefront of expanding access to care,” Burdick said in the announcement. “It is a privilege to join the company at a time when our services are needed more than ever, and I look forward to working with the team in pursuit of our vision of a truly healthy society where physical and mental health come together to make lives. better.”
Background of Ken Burdick
Burdick comes to LifeStance with decades of experience at the highest levels of executive leadership in health insurance.
His previous position was executive vice president of markets and products for St. Louis-based Centene Corp. (NYSE: CNC). He held the position from January 2020 to February 2021.
He also held CEO positions at the following organizations: WellCare Health Plans Inc., based in Tampa, Fla., from 2015 to January 2020, when WellCare acquired Centene Corp.; Blue Cross and Blue Shield of Minnesota, from February 2012 to July 2012; and UnitedHealthcare, the health insurance division of UnitedHealth Group Inc. (NYSE: UNH), based in Minnetonka, Minnesota, from 2006 to 2008.
His other notable roles include being president and COO of WellCare for less than a year before taking over as CEO. Burdick was also CEO of Coventry Health Care Inc.’s behavioral health and Medicaid business from August 2010 to February 2012.
He began working for UnitedHealth Group in October 1995 and held various positions until 2009, ending as CEO of UnitedHealthcare’s Medicare division.
Burdick also currently serves on the boards of directors for Centene and First Horizon National Corp.
A recent trend
This is the second time a major behavioral health operator has chosen a CEO of one of the nation’s health insurance titans.
In April, Franklin, Tennessee-based Acadia Healthcare Company Inc. (Nasdaq: ACHC) named Christopher Hunter to the role of chief executive officer. Hunter was previously president of the Groups, Military and Specialties segment of Humana Inc. (NYSE: HUM), based in Louisville, Kentucky.
Burdick’s appointment also represents the continuation of minor leadership changes at LifeStance Health.
In May, the company appointed Qureshi COO — taking over from Gwen Booth, who has taken over as CEO of LifeStance Health Foundation. Qureshi is a co-founder of LifeStance Health and was previously chief growth officer.
Qureshi and the rest of the executive team remain “focused on guiding our business through the next phase of growth,” they said in the announcement.
The founding team of LifeStance Health partnered with private equity firms Summit Partners and Silversmith Capital Partners in 2015, launching a meteoric rise to one of, if not the, largest outpatient mental health providers in the country.
As of 2017, the company was launched through acquisitions, create a barrier for other operators looking for similar consolidation plays, Lester said at Goldman Sachs’ 43rd Annual Global Health Conference in June.
In the same conference appearance, Lester doubled down on LifeStance Health’s hybrid approach to care while limiting de novo office openings and improving physician retention.
On the company’s second-quarter 2022 earnings call, Lester detailed other efforts. drive the company to profitability. They include the launch of a new online booking and admissions experience platform and a pivot to organic growth.
LifeStance Health has acquired 83 companies since its inception. It employed 5,226 psychiatrists, advanced practice nurses, psychologists and therapists, while operating about 600 centers, as of June 30, according to the company.
In 2021, the company raised $667.5 million in annual income and posted a loss of $307 million.
