Morneau Shepell Exits Occupational Health BusinessBy Andrew Rickard | October 17 2014 07:05AM
On October 14, human resources consulting firm Morneau Shepell announced that, after completing a strategic review, it has decided to get out of the occupational health industry. The company's clinics provided medical services in remote areas and complex environmental settings such as construction sites, mines, and oil rigs.
The company has closed certain locations of its clinic-based business and sold the rest to Horizon Occupational Health Solutions Inc., a newly formed portfolio company of Persistence Capital Partners. However, Morneau Shepell says that it will continue to operate the Montreal clinic it recently acquired as part of its Groupe AST purchase, since it is a key part of the workers' compensation business in the region.
"We are increasing our focus on disability management and workers' compensation services, which complement our other capabilities and enable us to provide more integrated services to our clients," comments Zahid Salman, the executive vice president at Morneau Shepell responsible for Ontario and western Canada. "We don't expect any impact on operations in the short term as a result of the sale."