Jump to content

Rick Scott

From Wikipedia, the free encyclopedia

This is an old revision of this page, as edited by 63.3.16.1 (talk) at 20:47, 20 November 2010 (→‎Early life and education). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

This article is about the Politician and former head of Columbia HCA. For other people of the same name, see Richard Scott (disambiguation).
Rick Scott
Governor-elect of Florida
Assuming office
January 4, 2011
LieutenantJennifer Carroll
SucceedingCharlie Crist
Personal details
Born (1952-12-01) December 1, 1952 (age 71)
Bloomington, Illinois, U.S.
Political partyRepublican
SpouseAnn Scott
ChildrenJordan Scott
Allison Scott
Michael Scott
Residence(s)Naples, Florida, U.S.
Alma materUniversity of Missouri–Kansas City
Southern Methodist University
OccupationHealth Care Executive
Plastics Executive
WebsiteOfficial website

Richard Lynn "Rick" Scott (born December 2, 1952) is an American politician and businessman who is the current Governor-elect of Florida. Having defeated Bill McCollum in the Republican primary election, Scott defeated Democrat Alex Sink in a close race in the 2010 Florida gubernatorial election.[1]

Scott served in the U.S. Navy and then went into business. He earned a business degree and law degree and joined a Dallas firm where he became partner. In 1987 he helped found the 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 was forced to resign as Chief Executive of Columbia/HCA in 1997 amid a scandal 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.[2][3][4][5][6] Scott later became a venture capitalist, and entered into politics in 2010, when he announced his intention to run for Governor of Florida.

hes a ****face

Early business career

Scott made his first foray into business while he was in college, buying and reviving two Kansas City donut shops. After graduating from law school, Scott practiced law in Dallas, Texas. He was a partner at Johnson & Swanson, which was the largest law firm in Dallas at that time. One of his major clients was Tom Hicks of HM Capital Partners.

Scott history at Columbia Hospital Corporation

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.[7] With financing from Citicorp conditional on acquisition of HCA,[8] 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.[9] However, HCA declined the offer, and the bid was withdrawn.[10]

In 1988, Scott and Richard Rainwater, a multimillionaire financier from Fort Worth, each put up $125,000 in working capital in their new company, Columbia Hospital Corporation,[11] and borrowed the remaining money needed to purchase two struggling hospitals in El Paso for $60 million.[12] Then they acquired a neighboring hospital and shut it down. Within a year, the remaining two were doing much better.[13] By the end of 1989, Columbia Hospital Corporation owned four hospitals with a total of 833 beds.[12]

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. a few months before.[14] 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.[12]

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 7th largest U.S. employer and the 12th 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

A series of New York Times articles, beginning in 1996, began scrutinizing Columbia/HCA's business and Medicare billing practices. These culminated in the company being raided in July 1997 by Federal agents searching for documents.[15] Among the crimes uncovered were doctors being offered financial incentives to bring in patients, falsifying diagnostic codes to increase reimbursements from Medicare and other government programs, and billing the government for unnecessary lab tests.[16] Following the raids, the Columbia/HCA board of directors forced Scott to resign as Chairman and CEO.[17] He was paid $9.88 million in a settlement. He also left owning 10 million shares of stock worth over $350 million, mostly from his initial investment.[18][19][20] In 1999, Columbia/HCA changed its name back to HCA, Inc.

In settlements reached in 2000 and 2002, Columbia/HCA plead guilty to 14 felonies and agreed to a $600+ million fine in the largest fraud settlement in US 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.[2][3][4][5][6] 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.[21] In all, civil law suits cost HCA more than $2 billion to settle, by far the largest fraud settlement in US history at the time.[22]

Venture capitalist

After the forced departure from Columbia/HCA in 1997, Scott launched Richard L. Scott Investments, based in Naples, Florida (originally in Stamford, Connecticut[23]), which has stakes in health care, manufacturing and technology companies.

Between 1998 and 2001, Scott purchased 50% of CyberGuard Corporation for approximately $10 million. Amongst his investors was Metro Nashville finance director David Manning.[23] 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 2005-2006, 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.[24] The company was founded with his daughter Allison.[23] In 2008, Alijor was sold to Healthgrades, Inc.

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.[25]

The Health Network

In July 1997, Columbia/HCA Healthcare purchased controlling interest in America's Health Network (AHN), the first 24-hour health care cable channel, Columbia HCA never purchased AHN. They pulled out of the deal on the day of the closing because Scott and Vanderwater were terminate. This caused the immediate layoff of over 250 people in Orlando.[26] Later in 1997, Scott became majority owner of AHN.[27] 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.[28][29]

In mid-1999 AHN merged with Fit TV, a subsidiary of Fox Networks; the combination was renamed The Health Network.[30] Later in 1999, in a deal between News Corp., Fox Network's owner, 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.[31] In September 2001, The 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.[32]

Solantic

Solantic, based in Jacksonville, Florida, was co-founded in 2001 by Scott and Karen Bowling, a former television anchor whom Scott met after Columbia bought what is now Memorial Hospital Jacksonville in 1995.[33] 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 intended to be 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.[33] 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.[34] As of March 2009, Solantic had 24 centers, all located in Florida.[35]

Solantic has been the target of numerous employment discrimination suits, including one that settled with 7 plaintiffs for an undisclosed sum on May 23, 2007. These suits allegedly stem from a Scott-directed policy to not hire elderly or overweight applicants, preferring 'mainstream' candidates.[36]

Pharmaca

In 2003, Scott invested $5.5 million in Pharmaca Integrative Pharmacies,[37] 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.

Other work

In the 1990s, Scott was a partner of George W. Bush in ownership of the Texas Rangers.[38]

Political career

Conservatives for Patients' Rights

Main article: Conservatives for Patients' Rights

In February 2009, Scott founded Conservatives for Patients' Rights (CPR), which he said was intended to put pressure on U.S. Democrats to enact health care legislation based on free-market principles.[39] As of March, Scott had given about $5 million for a planned $20 million ad campaign by CPR.[40] CPR opposes the broad outlines of President Obama's health-care plans and has hired Creative Response Concepts, a public relations firm which previously worked with the Swift Boat Veterans for Truth among others.

2010 Florida gubernatorial campaign

Main article: Florida gubernatorial election, 2010

Scott ran against Democratic nominee Alex Sink[41] and independent candidate Michael E. Arth, an urban designer and policy analyst.[42][43]

On April 9, 2010, Scott announced his candidacy for the 2010 Republican Party nomination for Governor of Florida.[44] Susie Wiles, former communications chief to Jacksonville Mayor John Peyton, serves as his campaign manager, and Tony Fabrizio is his chief pollster. It was reported on May 7 that Scott's campaign has already spent $4.7 million on television and radio ads.[45] Scott's first video advertisement was released to YouTube on April 13.[46]

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 is counter to his current view and allegation.[47] 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 $28 million.[48] The Fort Myers News Press quoted Rick Scott as saying in total he spent $78 million of his own money on the campaign.

Rick Scott ultimately won in the general election for Governor of Florida, defeating Alex Sink by around 68,000 votes, or 1.29%.[49]

Other

  • Member of the National Board of the United Way, 1997 [50] to 2003.[51]
  • Time Magazine, America's 25 Most Influential People, June 1996[13]
  • Financial World magazine, silver award for the CEO of the Year, 1995[52]
  • Columbia University, School of Nursing, Second Century Award for Excellence in Health Care, 1995[52]

References

  1. ^ Smith, Ben (April 13, 2010). "Health Care Figure Running for Florida Governor". Politico. Retrieved April 13, 2010.
  2. ^ a b http://www.justice.gov/opa/pr/2003/June/03_civ_386.htm LARGEST HEALTH CARE FRAUD CASE IN U.S. HISTORY SETTLED
  3. ^ a b http://www.forbes.com/2000/12/15/1215disaster.html Disaster Of The Day: HCA
  4. ^ a b http://www.heraldtribune.com/article/20101020/OPINION/10201022?p=2&tc=pg
  5. ^ a b http://money.cnn.com/magazines/fortune/fortune_archive/2004/02/09/360103/index.htm
  6. ^ a b http://topics.nytimes.com/top/reference/timestopics/people/s/richard_l_scott/index.html?scp=2&sq=Columbia%20Ouster%20Costs&st=cse
  7. ^ "Hospital Corp. Bid Is Dropped". The New York Times. April 22, 1987.
  8. ^ Milt Freudenheim (5 October 1993). "http://www.nytimes.com/1993/10/05/business/the-hospital-world-s-hard-driving-money-man.html". The New York Times. {{cite news}}: External link in |title= (help)
  9. ^ "Bid for Hospital Corporation Withdrawn". The Washington Post.
  10. ^ "HCA Board Takes No Action on $3.85 Billion Takeover Bid". Associated Press. 17 April 1987.
  11. ^ Milt Freudenheim (October 4, 1993). "Largest Publicly Held Hospital Chain Is Planned". New York Times.
  12. ^ a b c Floyd Norris (October 6, 1994). "Efficiencies of scale are taken to the nth degree at Columbia". New York Times.
  13. ^ a b "Time 25". Time Magazine. June 17, 1996.
  14. ^ Kathryn Jones (November 21, 1993). "A Hospital Giant Comes to Town, Bringing Change". New York Times.
  15. ^ http://jacksonville.bizjournals.com/jacksonville/stories/2006/04/17/story1.html?t=printable Jacksonville Business Journal Friday, April 14, 2006
  16. ^ Bringing HCA Back to Life After years of scandal. Fortune Magazine Feb 2004
  17. ^ 2 LEADERS ARE OUT AT HEALTH GIANT AS INQUIRY GOES ON. New York Times July 1997
  18. ^ http://www.salon.com/news/feature/2009/09/30/rick_scott_one
  19. ^ http://www.thefreelibrary.com/HOSPITAL+FIRM+OUSTS+ITS+FOUNDER%3B+COLUMBIA%2FHCA+TRIES+TO+STOP...-a083874577
  20. ^ http://www.bizjournals.com/jacksonville/stories/2006/04/17/story1.html
  21. ^ Julie Appleby (December 18, 2002). "HCA to settle more allegations for $631M". USA Today.
  22. ^ http://www.justice.gov/opa/documents/doj-accomplishments.pdf
  23. ^ a b c "Great Scott by Drew Ruble, businesstn, July, 2006. Retrieved 6/23/09.
  24. ^ Lisa Sibley (July 25, 2008). "Alijor's online directory of providers growing". San Jose Business Journal.
  25. ^ "25 Emerging Companies." Nashville Post. December 1, 2002. Retrieved 6/23/09.
  26. ^ Tom Brinkmoeller (July 25, 1997). "Columbia buys stake in America's Health Network". Orlando Business Journal.
  27. ^ "Former Columbia/HCA official gains $9.9 million in severances". The (Oklahoma City) Journal Record. November 14, 1997.
  28. ^ "What's Richard Scott been doing? Keeping a low profile". The (Oklahoma City) Journal Record. August 3, 1998.
  29. ^ By early 1999, the network was available in 9.5 million American homes.Lisa Napoli (February 22, 1999). "Where Dr. Spock Meets 'E.R.' on Line". New York Times.
  30. ^ Jill Krueger (June 4, 1999). "AHN getting `fit' with Fox TV; Cable start-up gets backing, distribution muscle with network merger". Orlando Business Journal.
  31. ^ Linda Moss (January 8, 2001). "News Corp. Gets All of Health Network". Multichannel News.
  32. ^ "Discovery snaps up rival health network". Media Life Magazine. September 4, 2001..
  33. ^ a b M.C. Moewe (April 14, 2006). "Ex-Columbia chief helps grow Solantic". Jacksonville Business Journal.
  34. ^ 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.
  35. ^ Phil Galewitz (April 1, 2009). "Bethesda hospital, Solantic to open urgent care center". Palm Beach Post.
  36. ^ Tristram Korten (October 10, 2009). "A healthcare reform foe's alleged history of discrimination". Salon.com.
  37. ^ "Pharmaca gets equity to expand store base". Chain Drug Review. December 15, 2003.
  38. ^ Ex-Hospital CEO Battles Reform Effort, Dan Eggen, Washington Post, May 11, 2009
  39. ^ Mullins, Brody; Kilman, Scott (February 26, 2009). "Lobbyists Line Up to Torpedo Speech Proposals". Wall Street Journal. Retrieved April 2, 2009.
  40. ^ Edward Lee Pitts (March 28, 2009). "Conservatives worry that the cost of a government health plan can go in only one direction". World Magazine.
  41. ^ {{cite news}}: Empty citation (help)
  42. ^ Pat Hatfield, "DeLand's Urban Cowboy runs for governor: Can a Renaissance man with no money be governor?." West Volusia Beacon, 7-30-09, p. 1A, 12A
  43. ^ Catron, Derek, "DeLand Man Enters Race for Governor," Daytona Beach News-Journal, June 15, 2010 [1]
  44. ^ "Is Rick Scott the top Republican governor candidate on Facebook?". Politifact. St. Petersburg Times, Miami Herald. April 22, 2010. Retrieved June 24, 2010.
  45. ^ Smith, Adam C. (May 7, 2010). "Rick Scott, multimillionaire political rookie, gunning to be governor of Florida". St. Petersburg Times.
  46. ^ Scott for Florida (April 13, 2010). "Accountable". YouTube. Retrieved June 24, 2010.
  47. ^ Caputo, Marc. "Bill McCollum's attacks on rival Rick Scott clash with record". Miami Herald.
  48. ^ Orlando Sentinel, "Governor's Race: Rick, Scott, Alex Sink save harshest word for last debate."
  49. ^ Florida Governor race for 2010 from Florida Election Watch
  50. ^ "Revised Board of Governors, April 1997", unitedway.org, via archive.org, retrieved April 4, 2009
  51. ^ "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)
  52. ^ a b "Health Plan Exec Honored by Nursing School". Columbia University Record. Columbia University. October 20, 1995. Retrieved 2009-04-05.
Political offices
Preceded by Governor of Florida
Elect
2011-present 		Incumbent
Party political offices
Preceded by Republican Party nominee for Governor of Florida
2010 		Succeeded by
Most recent

Template:Persondata

Retrieved from "https://en.wikipedia.org/w/index.php?title=Rick_Scott&oldid=397926995"