NEW YORK (AP) -- Glenview Capital Management LLC says it has won shareholder approval for its plan to replace the entire board of directors at hospital operator Health Management Associates Inc.
Glenview, which owns 14.6 percent of HMA stock, said it expects the current board to promptly review the results of the vote. It expects the transition will happen this week. An HMA spokesperson did not immediately respond to a request for comment.
Steven Shulman, a senior adviser to private equity firm Water Street Healthcare Partners LLC, will become the new chairman of the board, Glenview said. He would take over from current Chairman William Schoen.
Glenview first introduced its proposal in June and it later won the support of proxy advisory firms Institutional Shareholder Service and Glass Lewis.
HMA is being eyed for a $3.9 billion takeover by fellow hospital operator Community Health Systems Inc.
Community Health, based in Franklin, Tenn., said last month it plans to pay a combination of cash and stock valued at $13.78 for each share of its fellow hospital operator. It also will make an additional payment of up to $1 per share depending on how some government investigations into HMA play out.
HMA has received subpoenas from the U.S. Department of Health and Human Services, Office of the Inspector General, regarding physician relationships and some emergency-room operations.
HMA runs 71 hospitals in 15 states, mostly in the Southeast and Texas.
HMA shares were unchanged in regular and after-hours trading at $13.24.
- Health Care Industry