Healthcare Staffing Report: April 2, 2015

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General Employment closes on Scribe, ex-MPS leader takes CEO role

General Employment Enterprises Inc. (NYSE MKT: JOB), an Oakbrook Terrace, Ill.-based staffing provider, closed on its acquisition of Scribe Solutions Inc., previously  announced in December. Scribe Solutions will now operate as a wholly owned subsidiary of General Employment. Scribe provides physicians with personal assistants — called medical scribes — to help with documentation and clerical duties. The company offers turnkey programs where it recruits, qualifies, hires and trains the scribes.

General Employment issued Series A convertible preferred stock of the company in exchange for 100% of Scribe Solutions’ common stock.

In addition, Scribe’s former chairman and CEO Derek Dewan is taking over as chairman and CEO at General Employment effective Wednesday. Dewan replaces Andrew Norstrud as CEO, but Norstrud will remain with the firm as CFO.

“This acquisition is an exciting next step to our strategic growth plan and will expand our services into the higher margin and fast growing healthcare staffing market,” said Norstrud. “I am looking forward to working with Derek; his extensive experience in the staffing industry will be key in propelling our organic growth and leading a strategic acquisition strategy.”

Dewan’s past work also includes serving as chairman and CEO of MPS Group Inc. In January 1994, Dewan had joined AccuStaff Inc., MPS Group's predecessor, as president and CEO, and took that company public in August 1994. Adecco purchased MPS Group for $1.3 billion in 2009

In addition to Dewan, former Scribe President and COO Alex Stuckey also joins General Employment in the same roles, effective today. Prior to joining Scribe, Stuckey was the founder and CEO of Fire Fighters Equipment Co.

Mary Claire Menze, founder and current executive VP at Scribe, will assume her previous role as president of Scribe.

General Employment board member Michael Schroering resigned from the board effective today.

General Employment provides professional staffing in information technology, engineering and accounting. It also provides light industrial staffing. Its brands include General Employment, Ashley Ellis, Triad and Omni-One.