Richard Brown, president and chief executive officer of Health Midwest, Kansas City, Mo., will continue to serve as chairman of the American Hospital Association's Section for Health Care Systems, even as he attempts to sell his system to investor-owned HCA, Nashville, for $1.1 billion.
Brown stands to receive a $7 million golden parachute if the deal closes. The sale is the subject of a pitched legal battle in Kansas and Missouri with the states' attorneys general, who want to dissolve the Health Midwest board and gain control of the foundation or foundations that would manage the proceeds from the sale, which are expected to reach $800 million (Dec. 16, p. 6).
In February, Brown was named the 2002 chairman of the AHA's systems section. In his one-year chairmanship, Brown and the section's governing council are working to define and focus AHA policy, advocacy, public policy issues and service strategies related to the AHA's health system members.
AHA committee chairmen and members must be employed by a member institution, spokesman Richard Wade said. HCA is a member of the AHA. A debate has surfaced over whether AHA board executives should serve simultaneously on the boards of for-profit companies selling goods or services to the nation's hospitals (Dec. 2, p. 8) and whether those ties detract from the association's policy advocacy mission.
"He is not planning on resigning any position until the outcome of the pending transaction is final," Health Midwest spokesman Chris Whitley said. "Assuming the transaction closes, he would be planning on resigning if he leaves the position of CEO."