Columbia / HCA CFO Resigns

Columbia/HCA Healthcare Corp. said Friday that its first-ever chief financial officer, Robert Stearns, who began work just three weeks ago, has resigned.

Columbia offered no reason for the resignation, effective Aug. 31. The largest U.S. hospital chain said only that Stearns, a former Dial Corp. executive and investment banker, had been hired by “previous management.” Neither Stearns nor other company executives could immediately be reached for comment.

Stearns started work July 21, four days before former Chairman and Chief Executive Richard Scott resigned under pressure along with President David Vandewater. The two stepped down amid a broad federal investigation into the company.

Before Stearns’ arrival, the CFO duties were handled by the company’s controller and investor-relations employees. No replacement was named in the company statement.

Authorities say they are investigating whether Columbia defrauded the government’s Medicare program and whether partnerships with doctors and other policies inappropriately funneled patients through the company’s network of hospitals and services.

Three company executives have been indicted, and state officials in Florida, Alabama and Texas are conducting their own Medicaid fraud investigations.

New Chairman and Chief Executive Thomas Frist Jr. and Chief Operating Officer Jack Bovender have pledged to rein in the company’s aggressive culture and make peace with investigators. With that in mind, Columbia on Thursday announced an overhaul plan that includes selling Columbia’s home-health business and being more open in its Medicare billing.

Bovender, who started work early this week, said he would be meeting with the company’s nine group presidents over the coming weeks. Whether employees stay or go depends on their accepting the company’s equal emphasis on business and ethics, Bovender said.

“I think good business practices can work in tandem with the highest ethical and moral standards,” Bovender said in an interview.

Shares of Nashville-based Columbia fell 13 cents to close at $33.88 on the New York Stock Exchange.