Entire HMA board to be replaced, major shareholder says

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The board of directors of Naples-based hospital company Health Management Associates will be replaced after a vote of shareholders led by the investment fund Glenview Capital Management LLC. Glenview, which owns 14.6 percent of HMA’s stock, issued a statement late Monday that said a majority of shareholders voted to support the replacement.

Glenview launched the effort in June, contending that HMA has “fallen short in their financial returns delivered to shareholders, their financial management and focus, our shared aspirational goals on regulatory compliance and the pursuit of a stable and effective leadership team.”

After initially fighting the proposal, HMA said last week it would be willing to add nominees offered by Glenview to the board and was prepared for one of Glenview’s nominees to become chairman. But Glenview rejected the offer. The replacement vote also comes after an announcement July 30 that Tennessee-based Community Health Systems, Inc., plans to buy HMA in a $7.6 billion deal.

HMA is an important player in Florida’s hospital market, as it operates or is a partner in 23 hospitals in the state.