|Scott in 2013|
|45th Governor of Florida|
January 4, 2011
|Lieutenant||Jennifer Carroll (2011–2013)|
|Preceded by||Charlie Crist|
|Born||Richard Lynn Scott
December 1, 1952
Bloomington, Illinois, U.S.
|Alma mater||University of Missouri, Kansas City
Southern Methodist University
|Profession||Lawyer; business executive|
|Allegiance||United States of America|
|Service/branch||United States Navy|
|Years of service||1971–1974|
|Rank||Petty Officer Third Class|
|Unit||USS Glover (FF-1098)|
Richard Lynn "Rick" Scott (born December 1, 1952) is an American politician and businessman who is the 45th and current Governor of Florida. A member of the Republican Party, Scott has served as the Florida governor since 2011.
Born in Bloomington, Illinois, Scott is the graduate of the University of Missouri, Kansas City, later receiving his law degree from Southern Methodist University's Dedman School of Law. He served in the United States Navy before starting his business career, joining the Dallas firm Johnson & Swanson, where he became partner. In 1987, at age 34, he co-founded Columbia Hospital Corporation with two business partners; this merged with Hospital Corporation of America in 1989 to form Columbia/HCA and eventually became the largest private for-profit health care company in the U.S.
He resigned as Chief Executive of Columbia/HCA in 1997 amid a controversy over the company's business and Medicare billing practices; the company ultimately admitted to fourteen felonies and agreed to pay the federal government over $600 million; Scott was not implicated. Scott later became a venture capitalist.
Scott announced his intention to run for Governor of Florida in 2010. He defeated Bill McCollum in the Republican primary election and defeated Democratic nominee Alex Sink in a close race in the general election, spending roughly $75 million of his own money in the process. Scott's net worth was estimated at $218 million in 2010 and $83 million in 2012.
- 1 Early life and education
- 2 Health care career
- 3 Venture capitalist career
- 4 Political career
- 5 Governor of Florida 2011-present
- 6 Election history
- 7 Other
- 8 References
- 9 External links
Early life and education
Rick Scott was born in Bloomington, Illinois, the second of five children born to financially struggling parents. He was raised in Kansas City, Missouri, where his father, Orba Scott, was a truck driver, and his mother, Esther, worked as a clerk at J.C. Penney, among other jobs. Scott graduated from North Kansas City High School in 1970, and then attended one year of community college and enlisted in the United States Navy, also in 1970. Scott was in the U.S. Navy for 29 months and served on the USS Glover (FF-1098) as a radar technician. Scott made his first foray into business while working his way through college and law school, initially buying and reviving two Kansas City donut shops. He attended college on the GI Bill, later graduating from the University of Missouri–Kansas City with a bachelor's degree in business administration and earned a law degree by working his way through Southern Methodist University.
Health care career
Hospital Corporation of America
In April 1987, Scott made his first attempt to buy the Hospital Corporation of America (HCA). While still a partner at Johnson & Swanson, Scott formed the HCA Acquisition Company with two former executives of Republic Health Corporation, Charles Miller and Richard Ragsdale. With financing from Citicorp conditional on acquisition of HCA, the proposed holding company offered $3.85 billion for 80 million shares at $47 each, intending to assume an additional $1.2 billion in debt, for a total $5 billion deal. However, HCA declined the offer, and the bid was withdrawn.
In 1988, Scott and Richard Rainwater, a financier from Fort Worth, each put up $125,000 in working capital in their new company, Columbia Hospital Corporation, and borrowed the remaining money needed to purchase two struggling hospitals in El Paso for $60 million. Then they acquired a neighboring hospital and shut it down. Within a year, the remaining two were doing much better. By the end of 1989, Columbia Hospital Corporation owned four hospitals with a total of 833 beds.
In 1992, Columbia made a stock purchase of Basic American Medical, which owned eight hospitals, primarily in southwestern Florida. In September 1993, Columbia did another stock purchase, worth $3.4 billion, of Galen Healthcare, which had been spun off by Humana Inc. several months earlier. At the time, Galen had approximately 90 hospitals. After the purchase, Galen stockholders had 82 percent of the stock in the combined company, with Scott still running the company.
In 1994, Columbia purchased Scott's former acquisition target, HCA, which had approximately 100 hospitals. In 1995, Columbia purchased Healthtrust, which had approximately 80 hospitals, primarily in rural communities. By 1997, Columbia/HCA had become the world's largest health care provider with more than 340 hospitals, 130 surgery centers, and 550 home health locations in 38 states and two foreign countries. With annual revenues in excess of $23 billion, the company employed more than 285,000 people, making it the seventh largest U.S. employer and the twelfth largest employer worldwide. Based on market capitalization, Columbia ranked in the top 50 companies in America and top 100 worldwide. That same year, the company was recognized by Business Week magazine as one of the 50 Best Performing Companies of the S&P 500.
Columbia/HCA fraud case details
On March 19, 1997, investigators from the FBI, the Internal Revenue Service and the Department of Health and Human Services served search warrants at Columbia/HCA facilities in El Paso and on dozens of doctors with suspected ties to the company. The Columbia/HCA board of directors pressured Scott to resign as Chairman and CEO following the inquiry. He was paid $9.88 million in a settlement. He also left owning 10 million shares of stock worth over $350 million. In 1999, Columbia/HCA changed its name back to HCA, Inc.
In settlements reached in 2000 and 2002, Columbia/HCA pled guilty to 14 felonies and agreed to a $600+ million fine in the largest fraud settlement in U.S. history. Columbia/HCA admitted systematically overcharging the government by claiming marketing costs as reimbursable, by striking illegal deals with home care agencies, and by filing false data about use of hospital space. They also admitted fraudulently billing Medicare and other health programs by inflating the seriousness of diagnoses and to giving doctors partnerships in company hospitals as a kickback for the doctors referring patients to HCA. They filed false cost reports, fraudulently billing Medicare for home health care workers, and paid kickbacks in the sale of home health agencies and to doctors to refer patients. In addition, they gave doctors "loans" never intending to be repaid, free rent, free office furniture, and free drugs from hospital pharmacies.
In late 2002, HCA agreed to pay the U.S. government $631 million, plus interest, and pay $17.5 million to state Medicaid agencies, in addition to $250 million paid up to that point to resolve outstanding Medicare expense claims. In all, civil lawsuits cost HCA more than $2 billion to settle, by far the largest fraud settlement in U.S. history.
Venture capitalist career
After his departure from Columbia/HCA in 1997, Scott launched Richard L. Scott Investments, based in Naples, Florida (originally in Stamford, Connecticut), which has stakes in health care, manufacturing and technology companies. Between 1998 and 2001, Scott purchased 50% of CyberGuard Corporation for approximately $10 million. Among his investors was Metro Nashville finance director David Manning. In 2006, CyberGuard was sold to Secure Computing for over $300 million. In February 2005, Scott purchased Continental Structural Plastics, Inc. (CSP) in Detroit, Michigan.
In July 2006, CSP purchased Budd Plastics from ThyssenKrupp, making Continental Structural Plastics the largest industrial composites molder in North America. In 2005-06, Scott provided the initial round of funding of $3 million to Alijor.com, which offered hospitals, physicians, and other health care providers the opportunity to post information about their prices, hours, locations, insurance accepted, and personal backgrounds online. The company was founded with his daughter Allison. In 2008, Alijor was sold to HealthGrades.
In May 2008, Scott purchased Drives, one of the world's leading independent designers and manufacturers of heavy-duty drive chain-based products and assemblies for industrial and agricultural applications and precision-engineered augers for agricultural, material handling, construction and related applications.
Scott reportedly has an interest in a chain of family fun centers/bowling alleys, S&S Family Entertainment, in Kentucky and Tennessee led by Larry Schmittou, one of baseball's legendary minor league owners.
America's Health Network (AHN)
In July 1997, Columbia/HCA Healthcare purchased controlling interest in America's Health Network (AHN), the first 24-hour health care cable channel. They pulled out of the deal on the day of the closing because Scott and Vanderwater were terminated, which caused the immediate layoffs of more than 250 people in Orlando. Later that same year, Scott became majority owner of AHN.
In 1998, Scott and former Columbia/HCA Healthcare President David Vandewater were the leaders in a group of investors that gave AHN a major infusion of cash so that the company could continue to operate. By early 1999, the network was available in 9.5 million American homes.
In mid-1999 AHN merged with Fit TV, a subsidiary of Fox; the combination was renamed The Health Network. Later that year, in a deal between News Corp., the owner of Fox Network, and WebMD, the latter received half-ownership of The Health Network. WebMD planned to relaunch The Health Network as WebMD Television in the fall of 2000, with new programming, but that company announced cutbacks and restructuring in September 2000, and in January 2001, Fox regained 100% ownership. In September 2001, Fox Cable Networks Group sold The Health Network to its main rival, the Discovery Health Channel, for $155 million in cash plus a 10 percent equity stake in Discovery Health.
Solantic, based in Jacksonville, Florida, was co-founded in 2001 by Rick Scott and Karen Bowling, a former television anchor whom Scott met after Columbia bought what is now Memorial Hospital (in Jacksonville, Florida) in 1995. Solantic opened its first urgent care center in 2002. It provides urgent care services, immunizations, physicals, drug screening, and care for injured workers. The corporation attracts patients who do not have insurance, cannot get appointments with their primary care physicians, or do not have primary care physicians. Solantic is an alternative to the emergency room care that these types of patients often seek, or for not seeing a doctor at all.
In 2006, Scott said that his plans for Solantic were to establish a national brand of medical clinics. In August 2007, the company received a $40 million investment from a private equity firm and said that it expected to open 35 clinics by the end of 2009, with annual revenues of $100 million once all these clinics were open, compared to $20 million at the time. As of March 2009, Solantic had 24 centers, all located in Florida.
Solantic was the target of an employment discrimination suit, which claimed that there had been a policy to not hire elderly or obese applicants, preferring 'mainstream' candidates. It was settled for an undisclosed sum on May 23, 2007. Scott responded to Salon regarding the claims of discrimination pointing out that "currently 53 percent of Solantic’s employees are white, 20 percent black and 17 percent Hispanic." 
In 2003, Scott invested $5.5 million in Pharmaca Integrative Pharmacies, which operates drugstores/pharmacies that offer vitamins, herbal medicine, skin products, homeopathic medicines, and prescriptions. Other investors in Pharmaca include Tom Stemberg, founder and former CEO of Staples, and Arthur Blank, co-founder of Home Depot.
Conservatives for Patients' Rights
In February 2009, Scott founded Conservatives for Patients' Rights (CPR), which he said was intended to put pressure on Democrats to enact health care legislation based on free-market principles. As of March, Scott had given about $5 million for a planned $20 million ad campaign by CPR. CPR opposes the broad outlines of President Obama's health-care plans and has hired Creative Response Concepts (CRC).
2010 Florida gubernatorial campaign
Scott ran against Democratic nominee Alex Sink. On April 9, 2010, Scott announced his candidacy for the 2010 Republican Party nomination for Governor of Florida. Susie Wiles, former communications chief to Jacksonville Mayor John Peyton, served as his campaign manager, and Tony Fabrizio was his chief pollster. It was reported on May 7 that Scott's campaign had already spent $4.7 million on television and radio ads. Scott's first video advertisement was released to YouTube on April 13.
During the primary campaign, Scott's opponent, Bill McCollum, made an issue of Scott's role at Columbia/HCA. Scott countered that the FBI never targeted him. Marc Caputo of Miami Herald contended that a 1998 bill sponsored by McCollum would have made it more difficult to prosecute Medicare fraud cases, and was counter to his current views and allegations. Scott won the August primary with approximately 47% percent of the vote, compared to 43% voting for McCollum, with McCollum conceding the race after midnight. By the October 25, 2010 Tampa debate between Scott and Alex Sink, Scott had spent $60 million of his own money on the campaign compared to Democratic opponent Alex Sink's reported $28 million. The Fort Myers News Press quoted Scott as saying in total he spent $78 million of his own money on the campaign, although other figures indicate he spent slightly over $75 million. He won in the general election for Governor of Florida, defeating Sink by around 68,000 votes, or 1.29%. He assumed office as the 45th Governor of Florida on January 4, 2011.
In the 2010 elections, Florida voters passed constitutional amendments banning gerrymandering of congressional and legislative districts. In February 2011, Scott withdrew a request to the United States Department of Justice to approve these amendments, which, according to The Miami Herald, might delay the implementation of the redistricting plan because the Voting Rights Act requires preclearance of state laws likely to have an impact on minority representation. Scott said he wants to make sure that redistricting is done properly. Several advocacy groups sued Scott in federal court to compel Scott to resubmit the acts to the Justice Department.
Governor of Florida 2011-present
Rejection of federal funding for high-speed rail
On February 16, 2011, Scott rejected $2.3 billion in federal funding to develop high-speed rail between Tampa and Orlando. Scott cited California's experience with high-speed rail, namely much lower than expected ridership and cost overruns that doubled the final price. In response, a veto-proof majority in the Florida Senate approved a letter rebuking Scott and asking the Department of Transportation to continue funding.
On March 1, 2011, two state senators filed a petition with the Florida Supreme Court to compel Scott to accept the rail funds on the grounds Scott lacked constitutional authority to reject funds which had been approved by a prior legislature. On March 4, the Florida Supreme Court held that Scott's rejection of the rail funds did not violate the Florida Constitution.
Port of Miami development
Following his rejection of Central Florida's High Speed Rail project, Scott moved to have the Florida Department of Transportation amend its work plan to include $77 million for dredging the Port of Miami to a depth of 50 feet. Once the port is dredged, Panamax-sized vessels coming through the expanded Panama Canal could load and unload cargo there.
Florida law requiring drug screening for welfare applicants
In June 2011 Scott signed a bill requiring those seeking welfare under the federal Temporary Assistance for Needy Families program to submit to drug screenings. Applicants who fail a drug test may name another person to receive benefits for their children. In an interview with CNN host Don Lemon, Scott said, "Studies show that people that are on welfare are higher users of drugs than people not on welfare" and "the bottom line is, if they're not using drugs, it's not an issue". Government researchers in 1999-2000 reported "that 9.6 percent of people in families receiving some type of government assistance reported recent drug use, compared to 6.8 percent among people in families receiving no government assistance at all." However preliminary figures show that just 2.5% of applicants tested positive for drugs, with 2% declining to take the test, while the Justice Department estimates that around 6% of Americans overall do drugs.
Steering college majors
In December 2012, Scott announced a plan to encourage students to pursue majors in engineering and science by reducing tuition for some majors.
2010 Florida Gubernatorial race
|General Election Results|
|Republican||Rick Scott & Jennifer Carroll||2,619,335||48.87%|
|Democratic||Alex Sink & Rod Smith||2,557,785||47.72%|
|Independent||Peter Allen & John E Zanni||123,831||2.31%|
|No party||Michael E. Arth & Al Krulick||18,644||0.35%|
|No party||Farid Khavari & Darcy G. Richardson||7,487||0.14%|
|No party||C. C. Reed & Larry Waldo, Sr.||18,842||0.35%|
|No party||Daniel Imperato & Karl C.C. Behm||13,690||0.26%|
|No party||Josue Larose & Valencia St Louis (write-in)||121||0.00%|
Source: Florida Division of Elections
- Member of the National Board of the United Way, 1997 to 2003.
- Time Magazine, America's 25 Most Influential People, June 1996
- Financial World magazine, silver award for the CEO of the Year, 1995
- Columbia University, School of Nursing, Second Century Award for Excellence in Health Care, 1995
- "Summary of Information on Rick Scott". Thepoliticalguide.com. Retrieved 2011-05-30.
- "Oh, if only Florida had a governor who liked business people". Blogs.orlandosentinel.com. Retrieved 2011-05-30.
- Largest Healthcare Fraud case in U.S. History Settled HCA Investigation Nets Record Total of $1.7 Billion
- Disaster Of The Day: HCA
- "The risk of choosing Scott". HeraldTribune.com. Retrieved 2011-05-30.
- Stires, David (February 9, 2004). "Bringing HCA Back to Life After years of scandal, the hospital chain is healthy again--and might just be a buy". CNN.
- Cave, Damien. "Rick Scott". The New York Times.
- Smith, Ben (April 13, 2010). "Health Care Figure Running for Florida Governor". Politico. Retrieved April 13, 2010.
- "Rick Scott net worth". therichest.org. Retrieved 2013-04-19.
- M.C. Moewe (April 14, 2006). "Ex-Columbia chief helps grow Solantic". Jacksonville Business Journal.
- Montgomery, Ben. "Young Rick Scott recalled as driven, frugal, studious, focused". Tampa Bay Times. Retrieved 12 November 2012.
- "Rick Scott". NNDB Intelligence Aggregator. NNDB. Retrieved 13 November 2012.
- "Rick Scott". Scott for Florida. Facebook. Retrieved 13 November 2012.
- "Rick Scott". Scott for Florida. Facebook. Retrieved 13 November 2012.
- "Time 25". Time Magazine. June 17, 1996.
- Bousquet, Steve. "Rick Scott the TV image well known, Rick Scott the man is not". Tampa Bay Times.
- "About Rick Scott". Cfnews13.com. 2010-12-28. Retrieved 2011-05-30.
- Rick Scott biography
- "Hospital Corp. Bid Is Dropped". The New York Times. April 22, 1987.
- Milt Freudenheim (October 5, 1993). "The Hospital World's Hard-Driving Money Man". The New York Times.
- "Bid for Hospital Corporation Withdrawn". The Washington Post.
- "HCA Board Takes No Action on $3.85 Billion Takeover Bid". Associated Press. April 17, 1987.
- Milt Freudenheim (October 4, 1993). "Largest Publicly Held Hospital Chain Is Planned". New York Times.
- Floyd Norris (October 6, 1994). "Efficiencies of scale are taken to the nth degree at Columbia". New York Times.
- Kathryn Jones (November 21, 1993). "A Hospital Giant Comes to Town, Bringing Change". New York Times.
- "U.S. Expands Search of Columbia/HCA in Texas". The New York Times.
- Eichenwald, Kurt (July 1997). "2 Leaders are out at health giant as inquiry goes on". New York Times.
- "Rick Scott profits off the uninsured". Salon.com. 2009-09-30. Retrieved 2011-05-30.
- "Hospital Firm Ousts Its Founder; Columbia/Hca Tries To Stop Slide". Thefreelibrary.com. 1997-07-26. Retrieved 2011-05-30.
- Moewe, M.C. (April 17, 2006). "Ex-Columbia chief helps grow Solantic".
- Julie Appleby (December 18, 2002). "HCA to settle more allegations for $631M". USA Today.
- "Accomplishments of the Department of Justice 2001-09" (PDF). Retrieved 2011-05-30.
- "Great Scott by Drew Ruble, businesstn, July 2006. Retrieved 6/23/09.
- Lisa Sibley (July 25, 2008). "Alijor's online directory of providers growing". San Jose Business Journal.
- "25 Emerging Companies." Nashville Post. December 1, 2002. Retrieved June 23, 2009.
- "Former Columbia/HCA official gains $9.9 million in severances". The (Oklahoma City) Journal Record. November 14, 1997.
- Lisa Napoli (February 22, 1999). "Where Dr. Spock Meets 'E.R.' on Line". New York Times.
- Jill Krueger (June 4, 1999). "AHN getting `fit' with Fox TV; Cable start-up gets backing, distribution muscle with network merger". Orlando Business Journal.
- Linda Moss (January 8, 2001). "News Corp. Gets All of Health Network". Multichannel News.
- "Discovery snaps up rival health network". Media Life Magazine. September 4, 2001.
- Urvaksh Karkaria (August 15, 2007). "Solantic to expand well beyond state: The urgent-care center is planning to open 35 more clinics by the end of 2009". Jacksonville Times-Union.
- Phil Galewitz (April 1, 2009). "Bethesda hospital, Solantic to open urgent care center". Palm Beach Post.
- Tristram Korten (October 10, 2009). "A healthcare reform foe's alleged history of discrimination". Salon.com.
- "Pharmaca gets equity to expand store base". Chain Drug Review. December 15, 2003.
- "Ex-Hospital CEO Battles Reform Effort", Dan Eggen, Washington Post, May 11, 2009
- Mullins, Brody; Kilman, Scott (February 26, 2009). "Lobbyists Line Up to Torpedo Speech Proposals". Wall Street Journal. Retrieved April 2, 2009.
- Edward Lee Pitts (March 28, 2009). "Conservatives worry that the cost of a government health plan can go in only one direction". World Magazine.
- Catherine Whittenburg (August 24, 2010). "Scott claims victory in Republican governor's race". The Tampa Tribune.
- "Is Rick Scott the top Republican governor candidate on Facebook?". Politifact. St. Petersburg Times, Miami Herald. April 22, 2010. Retrieved June 24, 2010.
- Smith, Adam C. (May 7, 2010). "Rick Scott, multimillionaire political rookie, gunning to be governor of Florida". St. Petersburg Times.
- Scott for Florida (April 13, 2010). "Accountable". YouTube. Retrieved June 24, 2010.
- Caputo, Marc. "Bill McCollum's attacks on rival Rick Scott clash with record". Miami Herald.
- "Orlando Sentinel, "Governor's Race: Rick, Scott, Alex Sink save harshest word for last debate."". Articles.orlandosentinel.com. 2010-10-26. Retrieved 2011-05-30.
- Florida Governor race for 2010, Florida Election Watch
- Mark I. Pinsky (December 2010). "Florida Voters Pass Milestone Measures to End Gerrymandering". Politics Daily.
- Steve Bousquet (January 25, 2011). "Rick Scott moves to delay redistrict plan". The Miami Herald.
- Mary Ellen Klas (February 3, 2011). "Gov. Rick Scott sued over decision to halt federal review over redistricting standards". St. Petersburg Times.
- Williams, Timothy. "Florida's Governor Rejects High-Speed Rail Line, Fearing Cost to Taxpayers", The New York Times, February 16, 2011. Retrieved on 2011-02-19.
- Malcolm Out Loud Interview with Rick Scott, malcolmoutloud.tv
- Zinc, Janet & Bender, Michael. "Scott rebuked by 26 senators over high-speed rail funding", The Miami Herald, February 17, 2011. Retrieved on 2011-02-19.
- Tracy, Dan & Schlueb, Mark. "Two lawmakers ask high court to force Scott to take high-speed rail money", The Orlando Sentinel, March 1, 2011. Retrieved on 2011-03-01.
- Kastenbaum, Steve. "Florida high-speed train project derailed; Court rules for Scott", CNN, March 4, 2011. Retrieved on 2011-03-04.
- "Gov. Rick Scott promises $77 million for Port of Miami project - St. Petersburg Times". Tampabay.com. Retrieved 2011-05-30.
- "Florida governor signs welfare drug-screen measure". CNN.com. Retrieved 2011-09-28.
- "Rick Scott says welfare recipients are more likely to use illicit drugs". PolitiFact.com. Retrieved 2011-09-28.
- "Florida: Few Drug Users Among Welfare Applicants". AssociatedPress.com. Retrieved 2011-09-28.
- "To Steer Students Toward Jobs, Florida May Cut Tuition for Select Majors."
- [dead link]
- "Revised Board of Governors, April 1997", unitedway.org, via archive.org, retrieved April 4, 2009
- "United Way of America Board of Governors, As of April 27, 2002, unitedway.org, via archive.org, retrieved April 4, 2009 (web page dated February 2003)
- "Health Plan Exec Honored by Nursing School". Columbia University Record (Columbia University). October 20, 1995. Retrieved 2009-04-05.
- Governor Rick Scott official Florida government site
- Biography at the National Governors Association
- Profile at Ballotpedia
- Profile at Notable Names Database
- Biography, interest group ratings, public statements, votes and actions, and campaign finances at Project Vote Smart
- Fact-checking at PolitiFact.com
- Financial information at FollowTheMoney.org
- Issue positions and quotes at On the Issues
- Appearances on C-SPAN programs
- Appearances at the Internet Movie Database
- Collected news and commentary at Bloomberg News
- Collected news and commentary at The New York Times
- Collected news and commentary at The Washington Post
|Party political offices|
|Republican nominee for Governor of Florida
|Governor of Florida
|United States order of precedence (ceremonial)|
as Vice President
|Order of Precedence of the United States
Mayor of city
in which event is held
Otherwise John Boehner
as Speaker of the House of Representatives
as Governor of Michigan
|Order of Precedence of the United States
as Governor of Texas