Hedge Funder Robbins Seeks Health Mgmt. Assoc. Shake-Up

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Hedge Fund Glenview Capital said Tuesday it wants a shakeup of the board of Health Management Associates, saying the health-care company has underperformed its competitors.

The fund, whose 14.6 percent stake in HMA makes it the company's largest shareholder, made the demand in an early filing Tuesday. Glenview Capital is the hedge fund of Larry Robbins, who started the firm in 2000.

HMA operates 71 hospitals in 15 states, including general acute care hospitals and other health care facilities in non-urban communities, employing more than 10,000 physicians. HMA told CNBC that the company's "leadership and legal teams are currently reviewing the communication from Glenview."

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In a letter to HMA shareholders, Glenview cited "significant room for improvement" and a "deficiency at both the Board and management level" as reasons for the move. Glenview said HMA has "completed a lost decade through 2012" and has underperformed its peers over both the near and medium term.

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"HMA's ability to properly forecast and deliver upon management's business plan is well below average in the industry, and financial leadership has failed to establish investor credibility over time," Glenview said in the note.

Glenview also criticized the current board for the recent departure of HMA CEO Gary Newsome in early June, noting that "HMA will be searching for its 5th CEO in 13 years under a largely consistent Board."

The fund also said that following more than 18 months of conversations with HMA, both the board and management were "unreceptive to constructive discussion" and that the "inability to find common ground to assist HMA in finding a constructive path forward have left us with the following decision path."

Read the entire Glenview note to shareholders here.

—CNBC's By Paul Toscano. Follow him on Twitter @ToscanoPaul.