* Gary Newsome to lead Mormon mission in Uruguay
* Company says search under way for his replacement
May 28 Hospital operator Health Management
Associates Inc said on Tuesday its Chief Executive Gary
Newsome would retire effective July 31, and its board of
directors has begun a search for his replacement.
Upon retiring from HMA, Newsome will lead a mission in
Uruguay for the Church of Jesus Christ of Latter-day Saints, the
company said in a statement.
Newsome will retire from his posts as CEO, president and
board director. A group of four directors will lead the search
for a new CEO.
The announcement of Newsome's retirement follows HMA's
disclosure on Friday that it had adopted a shareholder rights
plan, commonly referred to as a poison pill, in response to
investor Glenview Capital Management's notice that it could
increase its stake in the company.
Earlier on Tuesday, Glenview Capital Management said it had
accumulated a 14.6 percent stake in HMA but had no intention of
buying 75 percent of the company's stock despite regulatory
filings it made seeking authorization for higher ownership
Last month, HMA said it had received a subpoena in April
from the U.S. Securities and Exchange Commission seeking
documents as part of an investigation into billing and
accounting for Medicare, Medicaid, privately insured and
The company was the subject of a "60 Minutes" television
news story in December that described aggressive patient
admissions policies allegedly pursued at the company's U.S.
hospitals. HMA has denied the allegations.
In April, HMA cut its 2013 earnings outlook, citing weak
patient admissions, which sent its shares tumbling.
Shares of HMA closed up 6.88 percent at $11.80 Tuesday on
the New York Stock Exchange.