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|birth_date={{birth year and age|1952}}
|birth_date={{birth year and age|1952}}
|birth_place=[[Bloomington, Illinois|Bloomington]], [[Illinois]], [[United States|U.S.]]
|birth_place=[[Bloomington, Illinois|Bloomington]], [[Illinois]], [[United States|U.S.]]
|occupation=Health Care Executive, Plastics Executive
|occupation=Health Care Executive<br>Plastics Executive
|alma_mater=[[University of Missouri–Kansas City]]
|alma_mater=[[University of Missouri–Kansas City]]
|party=[[Republican Party (United States)|Republican]]
|party=[[Republican Party (United States)|Republican]]

Revision as of 15:18, 16 June 2010

This article is about the American businessman and conservative activist. For other people of the same name, see Richard Scott.
Rick Scott
Personal details
Born1952 (age 72–73)
Bloomington, Illinois, U.S.
Political partyRepublican
SpouseAnn Scott
ChildrenJordan Scott
Allison Scott
Alma materUniversity of Missouri–Kansas City
OccupationHealth Care Executive
Plastics Executive
WebsiteOfficial site

Richard Lynn "Rick" Scott (born 1952) is an American politician, a candidate for Florida governor, a businessman, healthcare industry executive, lawyer and founder of Conservatives for Patients' Rights (CPR), a group that advocates against expanding the U.S. government's role in healthcare. He is competing in the Florida gubernatorial election, 2010.[1]

Scott served in the U.S. Navy and then went into business redeveloping donut shops while in college. He earned a business degree, law degree and joined a Dallas firm where he became partner. In 1987 he helped found the Columbia Hospital Corporation with two business partners. It was merged with Columbia Hospital Corporation of America in 1989 to form Columbia/HCA and eventually became the largest health care company in the U.S.

Scott was ousted by Columbia/HCA's board of directors in 1997 in the midst of the nation's biggest health care fraud scandal. The company ultimately settled the Medicaid and Medicare fraud allegations and paid out a total of $1.7 billion dollars in fines and civil claims.[2][3] After his departure from Columbia/HCA, Scott established Richard L. Scott Investments, a private investment firm based in Naples, Florida that owns stakes in health care, manufacturing and technology companies.

Early life and education

Rick Scott was born in Bloomington, Illinois and raised in Kansas City, Missouri, where his father was a truck driver and his mother worked as a clerk at J.C. Penney, among other jobs.[4] Scott graduated from high school in 1970, and then attended one year of community college after which he enlisted in the United States Navy. He was in the Navy for 29 months[5] and served on the USS Glover as a radar technician. Scott later attended the University of Missouri and earned a law degree from Southern Methodist University.

In 1972, he married his high school sweetheart.[4] As of early 2009 the couple lived in Naples, Florida.

Business career

Scott made his first foray into business while he was in college, buying and reviving two Kansas City doughnut shops. After graduating from law school, Scott practiced law in Dallas, Texas, where he specialized in health care mergers and acquisitions.[citation needed] 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.

Columbia Hospital Corporation

In April 1987, while a partner at Johnson & Swanson, Scott, along with two former executives of the Republic Health Corporation, a Dallas-based hospital chain, made a $3.8 billion all-cash offer to purchase the Hospital Corporation of America (HCA). HCA's board rejected the offer.[6][7]

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,[8] and borrowed the remaining money needed to purchase two struggling hospitals in El Paso for $60 million.[9] Then they acquired a neighboring hospital and shut it down. Within a year, the remaining two were doing much better.[5] By the end of 1989, Columbia Hospital Corporation owned four hospitals with a total of 833 beds.[9]

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.[10] 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.[9]

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 cases

Numerous New York Times stories, beginning in 1996, began scrutinizing Columbia/HCA's business and Medicare billing practices. These culminated in the company being raided by Federal agents searching for documents and eventually the ousting of Scott by his fellow board directors.[11] 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.[12] Scott was never charged with any wrongdoing. In 1999, Columbia/HCA changed its name back to HCA, Inc.

In 2001, HCA reached a plea agreement with the U.S. government that avoided criminal charges against the company and included $95 million in fines.[4] 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.[13] In all, civil law suits cost HCA more than $1.7 billion to settle, including more than $500 million paid in 2003 to two whistleblowers.[4] HCA wound up paying fines and settlements totaling $1.7 billion.

Venture capitalist

After his forced departure from Columbia/HCA in 1997, Scott launched Richard L. Scott Investments, based in Naples, Florida (originally in Stamford, Connecticut[14]), 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.[14] 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 ThysseenKrupp, making Continental Structural Plastics the world's 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.[15] The company was founded with his daughter Allison.[14] 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.[16]

The Health Network

In July 1997, Columbia/HCA Healthcare purchased purchased controlling interest in America's Health Network (AHN), the first 24-hour health care cable channel, which had 6.5 million viewers at the time.[17] Later in 1997, Scott became majority owner of AHN.[18] 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.[19][20]

In mid-1999, AHN merged with Fit TV a subsidiary of Fox Networks; the combination was renamed The Health Network.[21] 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.[22] 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.[23]

Solantic

Solantic, based in 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.[4] 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.[4] In August 2007, the company received a $40 million investment from private equity firm, and said that it expected to have 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.[24] As of March 2009, Solantic had 24 centers, all located in Florida.[25]

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.[26]

Pharmaca

In 2003, Scott invested $5.5 million in Pharmaca Integrative Pharmacies,[27] which operates drugstore/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.[28] He was also a vice-chairman of The Business Council.[citation needed]

Scott sat on the board of directors of then CyberGuard [citation needed] which was later acquired by Secure Computing and later by Mcafee. CyberGuard produced internet monitoring equipment in use by both Iran and Saudi Arabia to enforce internet censorship[29][30]. Media Matters released a document detailing Scott's links to the internet monitoring company, which has been used by these regimes in order to suppress internet communication[citation needed]. Reporters Without Borders, in 2001, produced a report which stated: "According to Secure Computing, this software makes it possible to block millions of websites in over 60 categories[citation needed]. It is therefore easy for the Iranian government to block websites for political reasons."[31]

Politics

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 several free-market principles.[32] As of March, Scott had given about $5 million for a planned $20 million ad campaign by CPR.[33] 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.

In early May 2009, in an ad broadcast in the Washington D.C. area and in Scott's home town of Naples, Florida, a group called Health Care for America Now said of Scott: "He and his insurance-company friends make millions from the broken system we have now."[34][35] Some conservative health-care policy experts also questioned Scott's involvement on grounds that Obama's health-care plan had yet to be made public, or on grounds that the insurance industry is willing to consider a compromise which would allow greater government involvement in health care. Other conservative groups have been more welcoming; the director of the Council for Affordable Health Insurance indicated a willingness to work with Scott, saying: "He's bringing a lot of money to the table."[2]

The group was widely criticized by Nobel Prize winning economist Paul Krugman in the New York Times for pretending to be a grassroots movement of citizens when in actuality the citizens were bussed in to congressperson's local meetings and the group was being led by Scott.[36]

Florida Republican gubernatorial candidate, 2010

In April 2010, Scott announced his candidacy for the Republican Party nomination for Governor of Florida in the 2010 election.

Other

  • Member of the National Board of the United Way, 1997 [37] to 2003.[38]
  • Time Magazine, America's 25 Most Influential People, June 1996[5]
  • Financial World magazine, silver award for the CEO of the Year, 1995[39]
  • Columbia University, School of Nursing, Second Century Award for Excellence in Health Care, 1995[39]

See also

References

  1. ^ Smith, Ben (April 13, 2010). "Health Care Figure Running for Florida Governor". Politico. Retrieved April 13, 2010.
  2. ^ a b Rutenberg, Jim (April 1, 2009). "Health Critic Brings a Past and a Wallet". The New York Times. Retrieved April 2, 2009.
  3. ^ Richard L. Scott, The New York Times
  4. ^ a b c d e f M.C. Moewe (April 14, 2006). "Ex-Columbia chief helps grow Solantic". Jacksonville Business Journal.
  5. ^ a b c "Time 25". Time Magazine. June 17, 1996.
  6. ^ "Hospital Corp. Bid Is Dropped". New York Times. April 22, 1987.
  7. ^ "The Hospital World's Hard-Driving Money Manauthor=Milt Freudenheim". New York Times. October 5, 1993.
  8. ^ Milt Freudenheim (October 4, 1993). "Largest Publicly Held Hospital Chain Is Planned". New York Times.
  9. ^ a b c Floyd Norris (October 6, 1994). "Efficiencies of scale are taken to the nth degree at Columbia". New York Times.
  10. ^ Kathryn Jones (November 21, 1993). "A Hospital Giant Comes to Town, Bringing Change". New York Times.
  11. ^ http://jacksonville.bizjournals.com/jacksonville/stories/2006/04/17/story1.html?t=printable Jacksonville Business Journal Friday, April 14, 2006
  12. ^ Bringing HCA Back to Life After years of scandal. Fortune Magazine Feb 2004
  13. ^ Julie Appleby (December 18, 2002). "HCA to settle more allegations for $631M". USA Today.
  14. ^ a b c "Great Scott by Drew Ruble, businesstn, July, 2006. Retrieved 6/23/09.
  15. ^ Lisa Sibley (July 25, 2008). "Alijor's online directory of providers growing". San Jose Business Journal.
  16. ^ "25 Emerging Companies." Nashville Post. December 1, 2002. Retrieved 6/23/09.
  17. ^ Tom Brinkmoeller (July 25, 1997). "Columbia buys stake in America's Health Network". Orlando Business Journal.
  18. ^ "Former Columbia/HCA official gains $9.9 million in severances". The (Oklahoma City) Journal Record. November 14, 1997.
  19. ^ "What's Richard Scott been doing? Keeping a low profile". The (Oklahoma City) Journal Record. August 3, 1998.
  20. ^ 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.
  21. ^ Jill Krueger (June 4, 1999). "AHN getting `fit' with Fox TV; Cable start-up gets backing, distribution muscle with network merger". Orlando Business Journal.
  22. ^ Linda Moss (January 8, 2001). "News Corp. Gets All of Health Network". Multichannel News.
  23. ^ "Discovery snaps up rival health network". Media Life Magazine. September 4, 2001..
  24. ^ 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.
  25. ^ Phil Galewitz (April 1, 2009). "Bethesda hospital, Solantic to open urgent care center". Palm Beach Post.
  26. ^ Tristram Korten (October 10, 2009). "A healthcare reform foe's alleged history of discrimination". Salon.com.
  27. ^ "Pharmaca gets equity to expand store base". Chain Drug Review. December 15, 2003.
  28. ^ Ex-Hospital CEO Battles Reform Effort, Dan Eggen, Washington Post, May 11, 2009
  29. ^ [1], Jim Landers, Dallas Morning News, December 20, 2005; accessed September 20, 2008.
  30. ^ [2], Clark Boyd, BBC.com, June 24, 2005; accessed September 20, 2008.
  31. ^ Rick Scott Tied to Internet Censorship in Iran and Saudi Arabia, Sam Stein, accessed on 31 May 2009.
  32. ^ Mullins, Brody; Kilman, Scott (February 26, 2009). "Lobbyists Line Up to Torpedo Speech Proposals". Wall Street Journal. Retrieved April 2, 2009.
  33. ^ Edward Lee Pitts (March 28, 2009). "Conservatives worry that the cost of a government health plan can go in only one direction". World Magazine.
  34. ^ New TV Ad Exposes Health Reform Critic’s Shady Past, Health Care for America Now
  35. ^ Dan Eggen (May 11, 2009). "Ex-Hospital CEO Battles Reform Effort; Ads Cite Long Waits In Canada and Britain". Washington Post.
  36. ^ Paul Krugman, The Town Hall Mob, The New York Times.
  37. ^ "Revised Board of Governors, April 1997", unitedway.org, via archive.org, retrieved April 4, 2009
  38. ^ "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)
  39. ^ a b "Health Plan Exec Honored by Nursing School". Columbia University Record. Columbia University. October 20, 1995. Retrieved 2009-04-05.
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