An investment group is calling for the removal of HCA Healthcare's director and audit committee chair at an April 28 meeting.
CtW Investment Group sent a letter to HCA shareholders April 1 urging them to oppose the reelection of director and audit and compliance committee chair Charles Holliday Jr.
The letter comes after the investment group accused Nashville, Tenn.-based HCA of excessive emergency department admissions and demanded the company's board address the issue.
"As a member of the Audit and Compliance Committee since 2016, and its Chairman for the past year, Mr. Holliday bears particular responsibility for the failure to properly oversee the company's admissions practices and for the development of significant regulatory and litigation risk," CtW wrote in the letter to other HCA investors.
The investment group claims HCA has "exhibited patterns of Medicare emergency admissions" that are similar to those of companies that have been the subject of investigations by the U.S. Justice Department and resulted in settlements.
HCA said it's in compliance with regulatory requirements.
CtW Investment Group said HCA's audit and compliance committee failed to respond to its letter, "suggesting a serious lack of accountability and effectiveness."
The Audit and Compliance Committee failed to engage with us, and indeed did not even respond to our letter, suggesting a serious lack of accountability and effectiveness, CtW Investment Group said.