|
Columbia mulls a shuffle
|
 |
November 17, 1997: 9:29 p.m. ET
Health-care company may reorganize holdings into five regional groups
|
NEW YORK (CNNfn) - Health-care giant Columbia/HCA, which continues to fight off investigations into its billing practices and acquisition methods, said Monday it is considering a restructuring plan that would reduce its health-care network by about a third and split its hospitals and surgery centers into smaller, regional groups.
The plan would geographically divide 230 hospitals and 115 surgery centers and cut the number of operating divisions to 18 from 36, officials said.
Reports first surfaced last week that Columbia was considering realigning its hospitals.
Columbia said its board of directors had authorized officials to look at various restructuring alternatives, but had not yet given the nod to the plan detailed Monday.
The plan, which would become effective Jan. 1, 1998, also would cut the number of surgery centers to 115 from 150.
Columbia (COL) Chairman and Chief Executive Officer Dr. Thomas Frist Jr. said the plan would give local hospitals and health networks a greater say in how the company's health facilities would operate.
"Since I became CEO on July 25, our management team has been engaged in an intensive effort to determine how best to strategically realign the assets and operations of Columbia/HCA. The goal is to return the company's attention to local hospitals and health care networks," he said.
Columbia's hospital holdings would be divided into five regions. The regions and the number of hospitals in each would be: East, 126; West, 106; America, 21; Atlantic, 45; and Pacific, 42.
The company's 148 ambulatory surgery centers would continue to report to George Morgan, president of the company's ambulatory surgery division.
Frist said the plan was an important step, but he foresees more changes.
"We have many more weeks and months ahead of us before I am satisfied we have repositioned this company in the proper way," Frist told CNN's "Moneyline with Lou Dobbs." (143K WAV) or (143K AIFF)
Officials are considering a variety of restructuring alternatives, including spinoffs to shareholders, for selected surgery centers and hospitals in the America, Atlantic and Pacific regions.
In addition to shareholder approval, all spinoffs or restructuring plans would have to clear several regulatory hurdles.
--From staff writer Cyrus Afzali
|
|
|
|
|
|
Columbia/HCA
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
