HMA Moves to Block Takeover Attempt
"In light of Glenview's Schedule 13D filing, as well as its filing under the HSR Act, the Board of Directors determined to implement the Rights Plan," HMA said in its filing. "The Board of Directors believes that the Rights Plan will help promote the fair and equal treatment of all stockholders of the Corporation (not just Glenview) and ensures that the Board of Directors remains in the best position to discharge its fiduciary duties to the Corporation and its stockholders. The Rights Plan adopted by the Board of Directors, which has a short one-year term and a 15% threshold, reflects the Board of Directors' effort to balance these concerns with best corporate governance practices."
HMA operates 71 general acute care hospitals in small- to mid-sized markets in 15 states with approximately 11,500 licensed beds, more than 42,000 employees and a medical staff of 10,000 physicians.
HMA was the subject on an unflattering report on 60 Minutes last December alleging that the company pressured physicians to admit patients regardless of their medical needs in order to boost profits. Producers for 60 Minutes "talked to more than 100 current and former employees." HMA denied the allegations.
John Commins is a senior editor with HealthLeaders Media.
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