HOSPITAL FIRM OUSTS ITS FOUNDER; COLUMBIA/HCA TRIES TO STOP SLIDE.
Byline: Raja Mishra Knight-Ridder Tribune News Wire
Columbia/HCA, the nation's biggest hospital operator, ousted founder and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Richard Scott Richard Scott may refer to:
tr.v. be·lea·guered, be·lea·guer·ing, be·lea·guers
1. To harass; beset: We are beleaguered by problems.
2. To surround with troops; besiege. image and halting the decline of its stock price.
Scott, 44, turned two struggling El Paso El Paso (ĕl pă`sō), city (1990 pop. 515,342), seat of El Paso co., extreme W Tex., on the Rio Grande opposite Juárez, Mex.; inc. 1873. , Texas, hospitals into a $20 billion, 342-hospital giant in less than a decade. His company is the subject of a federal investigation into fraudulent Medicare billing practices.
Since the investigation began, Columbia/HCA stock has dropped more than 10 percent. The stock price fell 25 cents Friday to $35.94 a share.
Columbia/HCA is negotiating a merger with the second-largest for-profit hospital For-profit hospitals, or alternatively investor-owned hospitals, are investor-owned chains of hospitals which have been established particularly in the United States during the late twentieth century. chain, Tenet Healthcare Tenet Healthcare Corporation (THC) is an operating company that owns and operates 57 hospitals in the United States . It is based in Dallas, Texas. Its stock ticker symbol on the New York Stock Exchange is NYSE: THC. Corp., a Columbia official told the Daily News earlier this week. A merger would create a $30 billion, 475-hospital company that would control 8 percent of the U.S. hospital market.
Friday's shake-up at Columbia/HCA also claimed David Vandewater, who resigned as president and chief operating officer Chief Operating Officer (COO)
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . Dr. Thomas Frist Jr., vice chairman, took over Scott's posts of chairman and chief executive officer. The Frist family started the Hospital Corp. of America; Columbia bought HCA HCA,
n.pr See acid, hydroxycitric. in 1994.
``Though the decision to resign was an extremely difficult one, we consider it to be the ultimate demonstration of our commitment to Columbia's mission,'' Scott said.
Lynn Malkes, a health care investment analyst for Roney and Co. in Detroit, said the dismissal of Scott had long been anticipated by Wall Street and that the possible acquisition of Tenet is the real news.
``The company will not change. Columbia already has its corporate culture in place. The acquisition will make them huge and they can do a lot of things,'' she said, adding that she believes the federal investigation into Columbia/HCA will not hurt the company in the long run.
Columbia/HCA's tactic has been to gain a foothold in a market through the purchase of one or two hospitals and then to use its deep pockets to snatch up competitors until it dominates the market. This was the case in Nashville, Houston, Atlanta and several smaller markets.
The strategy was devised and perfected by Scott. His approach of severe cost-cutting, layoffs and aggressive advertising was applauded in the financial sector but disturbing to many doctors and state officials. Several state attorneys general are pursuing their own Columbia/HCA investigations.