Member and Industry News

February 11, 2011

HCA Announces Internal Reorganization to Position Company for Future; Milton Johnson becomes President, retains role as Chief Financial Officer

HCA Announces Internal Reorganization to Position Company for Future; Milton Johnson becomes President, retains role as Chief Financial Officer
by HCA | Feb 11, 2011

NASHVILLE – HCA today announced an internal reorganization, effective immediately, designed to better align the company’s structure with the future dynamics of the healthcare industry. The changes include: the creation of a new subsidiary that will provide business services to other healthcare companies; a new structuring of provider operations; and a further integration of clinical quality performance with physician practice services.

“Emerging changes in healthcare require us to take a new approach to many aspects of how we deliver care.  Our refined structure is intended to better position HCA to take advantage of this evolution,” said Richard M. Bracken, Chairman and Chief Executive Officer of HCA. “In addition, we are excited about our plan to offer certain of HCA’s industry-leading practices to other healthcare concerns.”

Today’s announcement includes the promotion of R. Milton Johnson to President of HCA; he retains his title and responsibilities as Chief Financial Officer. Johnson, a nearly 30-year veteran of HCA, has held numerous leadership positions within the company and was elected to HCA’s board of directors in 2009.

“Milton has long been an integral member of HCA’s management team,” noted Bracken. “His appointment as President is a reflection of the leadership role he plays in our organization.”

Beverly B. Wallace, who reports to Johnson and most recently was President of HCA’s Shared Services Group, becomes President of a new wholly-owned subsidiary, which is anticipated to provide revenue cycle, staffing services and supply chain management to other healthcare providers.

Also as part of the reorganization, the company’s Chief Medical Officer, Dr. Jonathan B. Perlin, expands his role to include responsibility for HCA affiliated physician practices.  This new alignment better integrates physician practices with the organization’s overall clinical and quality operations. Perlin’s new title is President of HCA’s Clinical and Physician Services Group.

The reorganization includes the promotion of Sam Hazen to President of Operations, a new position, which reports to Bracken. In this role, he oversees the operations of the company’s 164 hospitals and 106 freestanding surgery centers, domestically and in the U.K.  Hazen’s previous position, which he held since 2001, was President of HCA’s Western Group, where he had responsibility for 63 hospitals in nine states.

HCA’s four operational group presidents now report to Hazen. Jon M. Foster, who had been President of HCA’s Central and West Texas Division in Austin, Texas, is now responsible for the company’s operations throughout Texas as well as Colorado, Oklahoma and Wichita, Kansas. Chuck Hall, who has been President of HCA’s Eastern Group covering Florida, South Carolina and southern Georgia, now adds responsibility for HCA’s operations in Alaska, California, Nevada, Utah and Idaho. Bruce Moore, who had been President of HCA’s Outpatient Services Group, becomes President, Operations and Service Lines Integration and is responsible for the company’s Ambulatory Surgery Division, and service line integration, including behavioral health sciences and oncology. Paul Rutledge retains responsibility for HCA’s operations in Louisiana, Indiana, Kentucky, Tennessee, Virginia, New Hampshire, northern Georgia, the Kansas City market and London, England.

Cautionary Statement about Preliminary Results and Other Forward-Looking Information
This press release contains forward-looking statements based on current management expectations. Those forward-looking statements include all statements other than those made solely with respect to historical fact.   Numerous risks, uncertainties and other factors may cause actual results to differ materially from those expressed in any forward-looking statements. These factors include, but are not limited to, (1) the ability to recognize the benefits of the internal reorganization and (2) other risk factors described in our annual report on Form 10-K for the year ended December 31, 2009 and other filings with the Securities and Exchange Commission.  Many of the factors that will determine our future results are beyond our ability to control or predict.  In light of the significant uncertainties inherent in the forward-looking statements contained herein, readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

All references to “Company” and “HCA” as used throughout this release refer to HCA Holdings, Inc. and its affiliates.

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