HMA Hospital CEO To Retire Amid Pressure From Hedge Fund Glenview Capital While Investigation Over Admission Procedures Continue
Posted May 29 2013 12:31pm
This is a lot of pressure and the CEO might be stressed to the max with everything piling in here. Not only do they have the battle and investigation over the admission rates, but now add in the Hedge Fund who wants more of the money action. HMA operates 71 hospitals in 15 states. Within Florida, HMA operates Lehigh Regional Medical Center in Lehigh Acres; Charlotte Regional Medical Center and the Peace River Regional Medical Center in Charlotte County; and two Physicians Regional Hospital campuses in Collier County. Here’s the 60 Minute video from December of 2012 as well as the link back to my original post discussing the software used relative to admissions.
Meanwhile the company has adopted the “poison pill” provision to protect itself from a takeover. In essence you wonder what would a Hedge Fund do with a hospital chain? I ask this question as it leads into new areas of software and algorithms when it comes to the current investigation which involves software called Pro-Med and how it was used. Do they want this headache as the jury is still a ways out here with the investigation. Again we are seeing the 3rd party consultants drawn in more and more with the investigations as that’s who hospitals contract with. Is is any wonder the retired CEO will pursue church mission work:) Stockholders have a difficult enough time with choosing investments so add on hedging to the entire business practices of the hospital chain. You can see at the link below that this is not the only hospital chain facing issues with revenues as they directly relate to admissions.
On top of that we have our floundering Consumer Protection Chief way over his head from the other side that knows little or nothing about math and business models. In addition we have those Medicare re-admission penalties that hospitals have to be aware of too, so what’s the deal here?
A lot of companies are beginning to buy their own stock back in the markets and that goes right along with the SEC filing made. As a matter of fact, the CEO is moving to South America to do his work. It is interesting any more to watch how religion and healthcare intertwine at times relative to decision making and business plans.
Just days after going on the defensive to prevent a company takeover, Health Management Associates said its president and CEO, Gary Newsome, plans to retire, effective July 31. A news release said the Naples, Fla.-based company has initiated a search for a successor.
Late Friday, HMA said the company had adopted a shareholder rights plan , a defensive move to help prevent a takeover, after 14. 6% shareholder Glenview Capital Management indicated an intention to take an activist role in the company. The chain has been under fire in recent months on a number of legal, public relations and financial fronts. The hedge fund also filed for antitrust clearance to acquire $2.2 billion of stock, or about 75% of the company.