Longstanding shareholder litigation involving Hospital Corporation of America's psychiatric hospitals was settled recently by Columbia/HCA Healthcare Corp.
The pact was reported recently in Columbia/HCA's second-quarter filing with the Securities and Exchange Commission.
During the quarter, the Louisville, Ky.-based chain of 197 hospitals said it settled the 1992 litigation by agreeing to pay $25,000 in plaintiffs' legal costs and donating $200,000 to charities designated by the plaintiffs. Further details of the settlement were not available.
All three major psychiatric hospital chains that were publicly traded in 1992 were hit with shareholder lawsuits after adverse publicity and scrutiny by payers and government investigators produced sharp downturns in profits. That affected the company's stock performance, an occurrence that often spawns shareholder suits.
Spokesmen for National Medical Enterprises and Community Psychiatric Centers said that shareholder litigation against their companies is still pending.