Health Catalyst Announces CEO Dan Burton to Step Down to Pursue Service Opportunities
Rhea-AI Summary
Health Catalyst (NASDAQ: HCAT) announced that CEO Dan Burton will step down from his position effective June 30, 2026, to pursue volunteer service opportunities with his wife in support of their faith. Burton, who has led the company for 15 years, will continue to serve on the Board and support the search for a new CEO.
Under Burton's leadership, Health Catalyst grew from a 3-person team to a public company with 1,100 healthcare clients and 1,400 team members. The company achieved over $2.2 billion in client-approved improvements and maintained exceptional team member engagement levels between the 94th and 99th percentile over the past decade, earning more than 125 Best Workplace Awards since 2013.
Positive
- Strong leadership legacy with company growth from 3 to 1,400 team members
- Achieved $2.2 billion in client-approved, measurable improvements
- Exceptional team engagement levels (94th-99th percentile)
- Planned, orderly transition with 10-month notice period
- CEO will remain on Board to ensure continuity
Negative
- Loss of long-term CEO who led company through IPO and growth phase
- Third senior leadership departure for faith-based service, indicating potential pattern
News Market Reaction
On the day this news was published, HCAT declined 23.31%, reflecting a significant negative market reaction. Argus tracked a trough of -20.3% from its starting point during tracking. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $78M from the company's valuation, bringing the market cap to $257M at that time. Trading volume was exceptionally heavy at 5.3x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Mr. Burton to Retire June 30, 2026, Actively Committed to Support Board in Transition and New CEO Search
As a result, Mr. Burton will transition from his full-time position as CEO, effective June 30, 2026, and retire from his full-time work at Health Catalyst. Mr. Burton will support the Board in its search for a new CEO and will continue to serve on the Board.
By then, Mr. Burton will have been leading Health Catalyst full-time for 15 years, having joined at an early stage as both an investor and an advisor, when the company consisted of just three team members, in January 2011. He initially planned to serve as interim CEO for only a period of several months. His subsequent, longstanding tenure, as requested by the Board, led to the company's meaningful expansion, including filing for an initial public offering in 2019, growing to include 1,100 active healthcare clients and over 1,400 team members, publishing over 375 documented client case studies of data-driven healthcare improvement, and enabling more than
Mr. Burton's leadership is centered on serving others and a strong commitment to the company's mission. This resulted in Health Catalyst maintaining exceptionally high team member engagement levels, which have consistently ranked between the 94th and 99th percentile during the past decade, according to Gallup assessments. As a result of this focus on team member engagement, Health Catalyst has earned more than 125 Best Workplace Awards since 2013. The company has been recognized by esteemed organizations locally in
It is this servant leadership mindset that also informs Mr. Burton's desire to become more deeply involved with his faith. For many years, Mr. Burton and his wife, Sarah, have planned to pursue mission-oriented service opportunities that align with their faith, after Dan completed his tenure as CEO and their children became adults.
"It has been the highlight of my career to serve in this role, in a company filled with teammates I love, in service of a mission that I believe in, in support of clients who are so deeply committed to that same mission, and with the backing of our shareholders, past and present, who have enabled us to pursue this mission to make healthcare measurably better," Mr. Burton said. "During this transition, I remain deeply committed to strong execution, every day, in support of accomplishing our company's goals and objectives, including driving client and shareholder value."
Jack Kane, Chairman of the Health Catalyst Board of Directors, said, "We, as a Board, would like to thank Dan for his many years of outstanding service to the company in the role of CEO. We are grateful Dan will continue to serve on the Board. Our Nominating and Corporate Governance Committee will conduct a CEO search to identify an effective, world-class CEO to lead Health Catalyst in its next chapter."
This is the third time a member of Health Catalyst's Senior Leadership Team has stepped down from Health Catalyst to provide additional faith-based volunteer service for the Church of Jesus Christ of Latter-Day Saints. In 2023, Health Catalyst's Chief Operating Officer, Paul Horstmeier, was called to serve for three years as the Mission President of the Puerto Rico San Juan Mission. From 2017 to 2020, Health Catalyst Co-Founder Steve Barlow was called to serve as a Mission President in
Health Catalyst, as a mission-driven organization, is grateful for and supportive of the many contributions its team members make in providing various types of volunteer service to the broader community.
About Health Catalyst
Health Catalyst (Nasdaq: HCAT) is a leading provider of data and analytics technology and services that ignite smarter healthcare, lighting the path to measurable clinical, financial, and operational improvement. More than 1,000 organizations worldwide rely on Health Catalyst's offerings, including our cloud-based technology ecosystem, Health Catalyst Ignite™, AI-enabled data and analytics solutions, and expert services to drive meaningful outcomes across hundreds of millions of patient records. Powered by high-value data, standardized measures and registries, and deep healthcare domain expertise, Ignite helps organizations transform complex information into actionable insights. Backed by a multi-decade mission and a proven track record of delivering billions of dollars in measurable results, Health Catalyst continues to serve as the catalyst for massive, data-informed healthcare improvement and innovation.
Media Contact:
Kathryn Mykleseth
PR and Communications Director
media@healthcatalyst.com
Investor Relations Contact:
Jack Knight
Vice President, Investor Relations
+1 (855) 309-6800
ir@healthcatalyst.com
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SOURCE Health Catalyst
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