Providence Service adds new board member recommended by shareholder

By Lisa Kerner

Charlotte, N.C., May 14 - Providence Service Corp. appointed Terence J. Cryan to its board of directors, increasing the number of independent directors on the board to five.

The total number of directors increased to seven, according to a Providence news release.

Cryan, president and chief executive officer of Medical Acoustics, LLC, was also appointed to the board's compensation and audit committees.

One of Providence's "largest institutional stockholders" referred Cryan, the release said.

"We believe that this appointment shows that we are not opposed to enhancing our board when presented with highly qualified, very experienced, and completely independent candidates in contrast to the candidates that the Avalon Group has nominated," Providence chairman and CEO Fletcher Jay McCusker said in company news release.

Avalon Correctional Services, Inc. and its controlling stockholder, Donald C. Smith, want Providence shareholders to elect Michael C. Bradley Jr. and retired U.S. Navy captain Brian T. Costello to Providence's board of directors at the company's annual meeting on June 15.

Providence is asking shareholders to re-elect McCusker and Kristi L. Meints, chairperson of the board's audit committee.

As previously reported in Prospect News, McCusker is planning to visit stockholders over the next few weeks and detail how Avalon's actions have the potential to jeopardize Providence's momentum and success.

According to Providence, the dissident group has no relevant experience in the social services industry and its members are all affiliates of Oklahoma City-based Avalon, which operates private correctional facilities for governmental payers in three states.

Providence is a Tucson-based provider of home- and community-based social services to government-sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections.

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