Glenview Capital tries to oust HMA board

NAPLES — New York City hedge fund Glenview Capital Management LLC is attempting to replace Health Management Associates' board of directors. Glenview, HMA's largest shareholder with 14.6% of its common stock, filed a Consent Solicitation Statement nominating eight candidates to replace the current board.

Glenview has dedicated a website to describe and promote its stance at revitalizehma.com.

“It is widely recognized by publishing analysts, financial press and professional investors that there is significant room for improvement at HMA,” Glenview says in its letter to shareholders. “For over a decade, despite the best efforts of well-intentioned individuals at the company, HMA has fallen short in their financial returns delivered to shareholder, their financial management and focus, our shared aspirational goals on regulatory compliance and the pursuit of a stable and effective leadership team.”

Glenview nominates the following individuals for the board:

- Earl Holland, former COO and vice chairman of HMA before his retirement in 2001;

- Stephen Guillard, former COO of Manor Care Inc., a provider of short-term and post-acute services and long-term care, from 2007 until his retirement in December 2011;

- Mary Taylor Behrens, president of Newfane Advisors Inc., a private consulting firm she founded in 2004;

- Stephen Epstein, founder and member of Epstein Becker and Green P.C., a law firm specializing in healthcare law since 1973;

- Peter Urbanowicz, managing director of Alvarez & Marshal Healthcare industry Group LLC, leading its health care compliance practice since May 2008;

- John McCarty, former executive vice president and chief financial officer of SHPS Inc., a provider of health improvement programs, from February 2006 until his retirement in December 2009;

- Steven Shulman, senior advisor with Water Street Healthcare Partners LLC, a private equity firm, since 2008.;

- Kirk Gorman, executive vice president and chief financial officer of Jefferson Health System in Philadelphia since September 2003.

The news came the same day HMA (symbol: HMA; recent price: $15.18) announced it was selected by the Southeast Volusia Hospital District Board of Commissioners to negotiate a lease agreement for the 112-bed Bert Fish Medical Center in New Smyrna Beach.

HMA, which through its subsidiaries operates 71 hospitals with approximately 11,000 licensed beds in the U.S., is under investigation for its billing practices by the Securities and Exchange Commission. The company also has been seen as a potential takeover target. Its shareholders adopted a poison pill provision May 28, and it announced it is considering “strategic alternatives,” or a sale, in June.