Team Health Holdings Inc. (NYSE: TMH) entered into an agreement to appoint members of investment firm JANA Partners to its board of directors. JANA owns approximately 8.0% of the company's common stock and last month claimed the firm had “made missteps in critical areas.”

Scott Ostfeld, partner of JANA and co-portfolio manager of JANA Strategic Investments, and Edwin (Mac) Crawford, former chairman of CVS Caremark Corp., have been appointed to TeamHealth’s board as Class I directors, effective immediately.

With the appointments of Ostfeld and Crawford, the TeamHealth Board will be comprised of 12 directors, 10 of whom are independent. TeamHealth and JANA also agreed that Nancy Schlichting, CEO of Henry Ford Health System, will be appointed as a Class II director in January 2017.

The company also agreed to reduce the size of the board of directors by one director each year over the next three years beginning at the 2016 annual meeting of shareholders.

“We are pleased to have reached this agreement with JANA, as we believe this outcome best serves the interests of TeamHealth and all of its shareholders,” said TeamHealth President and CEO Mike Snow. “We are confident that Scott, Mac and Nancy, with their diversified expertise and relevant experience, will add valuable perspective to TeamHealth’s Board as we execute on our strategic plan and enhance shareholder value. Our commitment to providing best-in-class support to our clinical community and exemplary service to our hospital partners remains unchanged as we work to achieve these important objectives.”

Last year Team Health received and rejected two merger offers by AmSurg Corp.