Medical Action promotes execs for 3 new units

Brentwood-based surgical products maker Medical Action Industries Inc. will realign its business into three distinct units and will promote three of its executives as president and general manager of each unit.

The realignment will separate marketing and sales into three categories: operating room, minor procedure and patient care.

“This is an exciting time for Medical Action," Paul Meringolo, president and chief executive, said in a Thursday news release.

“As we face unique challenges in the industry... this change will enable us to be more agile and focused," Meringolo said.

Founded in 1977, Medical Action sales and earnings have lagged following the 2010 loss of nearly $1.5 million in inventory due to weather-related water damage at one of its warehouses in Tennessee, and last year's increased costs for raw materials such as resin and cotton.

With about 1,300 workers, the company has a market capitalization of about $83 million, with its stock losing more than 40 percent of its value in the past 52 weeks. In early trading Thursday its shares were up 8 cents to $5.03, on the lower end of its 52-week range of $4.31-$9.85.

In its new realignment, the company said Thursday, each unit will be led by an executive promoted from within the business, and each leader will have the job titles of president and general manager. Richard Setian will head the custom procedure trays and operating room products unit; Cindy Bell will run the minor procedure kits and trays unit; and Charles Kelly will lead the patient care products unit.

The changes, scheduled to take effect on July 1, are meant to "increase focus on targeted market segments and accelerate growth."

Managing the transition is Robert DeSimone, vice president of strategic planning and organizational effectiveness, who recently joined the company. His role is "to manage all aspects of the realignment to ensure a seamless transition and to oversee the strategic planning process for the long term."

Medical Action describes itself as a diversified manufacturer and distributor of disposable medical devices, selling mostly to United States and international acute care facilities. It has expanded its target market to include physician, dental and veterinary offices, outpatient surgery centers, long-term care facilities and laboratories.