An investment fund that owns 14.6 percent of Health Management Associates’ common stock has launched an effort to replace the board of directors of the Naples-based hospital chain, reports the News Service of Florida.
In a lengthy letter to other shareholders Tuesday, Glenview Capital Management proposed replacing the HMA board with eight independent directors that it dubbed the “Fresh Alternative.” Glenview Capital Management also said 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.” HMA released a statement saying it had engaged Morgan Stanley to “assist with its ongoing consideration of strategic alternatives and opportunities available to HMA” and said its board would respond to Glenview Capital Management’s proposal in “due course.”
The investment fund’s move comes after a turbulent period for HMA, which operates hospitals in 15 states, with Florida its largest market. Among other things, the CBS show “60 Minutes” broadcast a story that focused on allegations HMA had pressured former employees and physicians to admit emergency-room patients to bring in more revenues.
Last month, Gary Newsome, the president and chief executive officer of HMA, announced he would retire to take a position with The Church of Jesus Christ of Latter-Day Saints.
