Walter L. Weisman, who as president and chief executive of American Medical International shepherded the company through nearly two years of restructuring, was named Tuesday as its next chairman.
AMI is a major health services provider with annual revenue of about $4 billion.
Weisman will succeed Royce Diener, who will step down after the Beverly Hills company's Jan. 21 annual meeting.
Diener, who joined the company in 1969 as an outside director, has been its chairman since 1979. He will remain a director and chairman of its executive committee.
Weisman was vice president and secretary of Chacno Medical Industries when AMI acquired it in 1972. He rose to become AMI's president in 1979 and chief executive in 1985.
Weisman will remain chief executive as well as becoming chairman.
AMI's chief operating officer, Gene Burlson, will take on the post of president.
As part of its restructuring, AMI closed down its national insurance operation, sold 15 acute-care hospitals and eliminated more than 2,000 jobs.
Earlier this year, Chicago physician Dr. LeRoy Pesch offered $1.91 billion for AMI, but the company turned it down as "seriously inadequate."
Pesch's offer expired in March.