Glenview takes HMA to the Web

Like many hedge funds, Glenview Capital Management prefers to stay out of the spotlight when it comes to managing its investments.

But the New York-based fund that manages $6 billion is making a big splash while seeking to replace the board of directors of Health Management Associates, the Naples-based operator of 71 hospitals. It has created a special website to make its case: RevitalizeHMA.com.

It was only in June that Glenview says it sought to work behind the scenes to urge management changes at HMA. Glenview owns 14.6% of HMA's publicly traded stock.

“We look forward to continuing our discussions with HMA in private and will use the governance tools available (which for us always starts with respectful and constructive dialogue) to pursue our common objectives of long-term value creation,” a Glenview statement in June reads.

But something changed along the way. Glenview launched the website to press its case for shareholders to replace HMA's entire board of directors, including longtime chairman William Schoen.

HMA's stock has gyrated wildly since news of Glenview's activism surfaced. The hospital company hired investment-banking firm Morgan Stanley and corporate deal attorneys Weil, Gotshal & Manges, fueling speculation that a sale is imminent.

Shareholders of record on July 18 will have the opportunity to vote on Glenview's slate of new directors. These include Earl Holland, 68, HMA's former chief operating officer and vice chairman until his retirement in 2001.