There is light at the end of the forest!
Columbia says may resolve issues by Q1 1999
NASHVILLE, May 14 (Reuters) - Columbia/HCA Healthcare Corp. chief executive Dr. Thomas Frist said Thursday that the
world's largest healthcare company may resolve difficulties with the federal government by the first quarter of next year.
Speaking to reporters after the company's annual shareholder meeting here, Frist said, ''We hope that we'll get these things
pulled together no later than the first quarter of this coming year.''
Columbia has been under federal investigation concerning its Medicare billing practices for more than a year.
Three mid-level Columbia managers in Florida have been indicted on fraud charges and federal prosecutors said
Wednesday that they expect to indict at least one more soon.
In the wake of the probe, Columbia has seen numerous management resignations, a falling stock price, shareholder lawsuits
and millions of dollars in special charges against earnings.
''Right now, I think that's a reasonable expectation for us .... to have the government issues, the corporate governance issues,
behind us'' by the first quarter of 1999, Frist said.
At the meeting, Frist told shareholders that Columbia is making progress in transforming the company.
He took over Columbia/HCA last summer following the ouster of longtime CEO Richard Scott along with more than a dozen
of Scott's managers.
Frist has since initiated a massive restructuring of the company. Among moves he has taken are a planned spinoff of two
groups of hospitals. A third group that had been planned for spinoff but was pulled off the table recently will likely be sold
off, said Jack Bovender, president and chief operating officer.
''We will in fact be selling those assets that were previously identified in the Atlantic group, or most of those assets,''
Bovender said.
Regards
Neil
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