In an attempt at revitalization, Columbia/HCA Healthcare Corp. last week appointed three new directors to its 10-member board.
The new members are Frederick Gluck, 62, a former managing partner of management consulting firm McKinsey & Co. and a past vice chairman of construction and engineering firm Bechtel Group; John McArthur, 64, former faculty dean at Harvard University Graduate School of Business Administration; and Kent Nelson, 60, retired chairman and chief executive officer of United Parcel Service. They will take their posts April 3.
The three will replace two retiring board members: Donald MacNaughton, 79, former chairman and CEO of Hospital Corporation of America; and William Young, 79, chairman of W.T. Young & Co., a Lexington, Ky., warehousing firm. The third seat was vacated July 25, 1997, when Nashville-based Columbia's then chairman and CEO, Richard Scott, resigned.
The board now will have five representatives from the healthcare industry and five representatives with financial, academic and executive experience.
Company spokesman Jeff Prescott said the search committee was looking more for new members with various backgrounds rather than a balance between healthcare and nonhealthcare representatives. "We were looking for people with broad experiences," he said. "Business acumen was clearly important."
The new board members will help lead Columbia's massive restructuring, which it's undertaking as a result of the federal government's investigation of fraud in its operations. Part of the plan calls for Columbia, the nation's largest hospital chain, to spin off 107 of its 339 hospitals into three companies.
Columbia Chairman and CEO Thomas Frist Jr., M.D., started the search when he took office the day Scott resigned. Frist knew he had three slots to fill because MacNaughton and Young had to retire, Prescott said.
Frist knew Nelson when the two served as board members for United Way of America. Through his son, Frist met McArthur at Harvard, Prescott said.