Columbia / HCA, Investigators Begin Talks

Talks have begun between lawyers for Columbia/HCA Healthcare Corp. and federal investigators as the company deals with a massive probe into its business practices, President and Chief Operating Officer Jack Bovender said. Separately, the Florida attorney general’s office said that several months ago it launched its own probe into the giant health-care company, joining Alabama and Texas in such a move. Bovender, who was appointed second in command this week at the embattled Nashville-based company, said he has not scheduled a meeting with federal authorities but that a formal dialogue involving top executives may come soon. “I think our lawyers are talking to them. The initial meetings can occur, I think, fairly quickly. But exactly how the dialogue and definitive discussions are going to go, I am not sure. The lawyers have that with them right now,” he said. A new team is taking over at the largest U.S. for-profit hospital firm amid a storm of controversy that saw the ouster two weeks ago of former top executives, the indictments of three middle managers last week on fraud charges, the filing of 11 shareholder lawsuits, and other troubles. Bovender was named a key lieutenant to Dr. Thomas Frist, who was appointed chief executive and chairman on July 24. Bovender said his early internal discussions have revealed a need for deep changes within Columbia, not only in certain business practices but also in overall style. Columbia shares rose 63 cents to close at $34.38 on the New York Stock Exchange.