Late Chairman’s Family Acts to Keep Control of American Health
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NEWPORT BEACH — The Kovens family is taking steps to maintain control of troubled American Health Services Corp. following the recent death of the company’s former chairman, Cal Kovens.
The financially ailing Newport Beach company, which runs medical diagnostic and treatment centers, elected Frank Egger, a former business associate of Kovens, as chairman. Egger has served on American Health’s board since 1991. In addition, the company elected Kovens’ widow, Roz, as a board member.
Kovens family interests control a 40% stake in the company.
Egger, 50, said he plans to help the company restructure its debt and pursue consolidations with other companies in the loss-ridden industry. Egger previously worked as chief financial officer for the Kovens family’s real estate and investment companies in Miami. He said he will leave American Health’s daily management to its chief executive, E. Larry Atkins.
American Health has lost money every year since 1991, and its liabilities exceed its assets by $11 million. The company lost $1.1 million last year on revenue of $36 million. It has a balloon payment of $10 million due next January on debt, company officials said.
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