Question: How does Mr. Bracken explain to the shareholders addressing the ongoing investigations and allegations reported by the Times. Mr. Bracken wants to regain the public's

How does Mr. Bracken explain to the shareholders addressing the ongoing investigations and allegations reported by the Times. Mr. Bracken wants to regain the public's trust and rebuild HCA's reputation within the healthcare industry.

Using the case study:

It was a cloudy, humid day in Nashville, Tennessee on August 6, 2012. The storms of the previous day had ended and brought some relief to the intense heat plaguing most of the country. Another storm, however, was brewing at HCA Holdings' corporate office as they prepared for the second quarter earnings release conference call with investors. The company was enjoying years of being the largest for-profit hospital management company in the U.S. and was prepared to report yet another quarter of increased earnings. The company had been showing continuous growth in patient volumes and profits. While CEO Richard Bracken and his executive team were pleased with the second quarter results, they were aware of news that could dampen any celebratory mood. Bracken and his team would be informing investors of a new investigation by the U.S. Attorney's Office in Miami into unnecessary cardiac procedures being performed in HCA facilities. Additionally, HCA had been fielding questions from The New York Times regarding the investigation as well as other issues at HCA in general. They were aware of at least one, possibly two, articles about HCA that the Times was planning publishing in the next few days.

Bracken and his staff would likely face questions from investors on how the investigation and pending Times articles would affect the company. HCA's current troubles began over four years ago when, in the spring of 2008, Mr. C. T. Tomlinson, a nurse at HCA's Lawnwood Regional Medical Center, in Fort Pierce, Florida, observed doctors performing unnecessary cardiac procedures.Tomlinson's concern for patient safety prompted him to bring the issue to the attention of his superiors, who warned him "to forget the matter." When Tomlinson's contract expired about a month later, it was not renewed. Tomlinson did not let the matter drop. Two years later in the summer of 2010, he sent a letter to HCA's Chief Ethics Officer Stephen Johnson, prompting a two-month internal investigation. Johnson's team issued an internal memo that concluded Tomlinson had been rightunnecessary cardiac procedures had been done as far back as 2002 and as recently as 2010. Additionally, they found evidence that incorrect information had been placed in the patient chart in order to justify the procedures. Finally, they determined that Tomlinson's contract had not been renewed in retaliation against him for bringing up the issue with his superiors. Now, two years later in July 2012, the Civil Division of the U.S. Attorney's Office in Miami was requesting information on the reviews done at ten HCA facilities, including Lawnwood, of the medical necessity of certain interventional cardiac procedures. The company informed investors in its recent 10-Q that they "cannot predict what effect, if any, the request or any resulting claims, including any potential claims under the federal False Claims Act, other statutes, regulations or laws, could have on the Company."

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!