According to the Nashville Post, W. Hudson Connery has been forced out of Essent. The former CFO Michael Browder has been named to take his place.
The irony is, he might make out better by that happening than by captaining it into the rocks. If there is a corporate buyout of his stock, it might save his nest egg.
It doesn't mean it's over, folks. Maybe just starting....frank
NashvillePost.com has learned that Essent Healthcare founder and 30-year industry veteran Hud Connery has been forced to step down as CEO by the company’s board of directors.
According to NashvillePost.com sources, the hospital operator’s CFO Mike Browder has been tapped to serve as the acting CEO and, they claim, is a candidate for to take the helm of the company permanently.
The board, led by investors from Thoma Cressey, has not announced the change, even to the Essent’s staff, as the shift, apparently, is not an amicable one. Allegedly, Connery and the board are currently at odds over a severance package and that his options in the company could total several million dollars.
Sources went on to claim that the board and a number of Essent’s investors would like to sell company.
Connery launched Essent in 1999. The company’s first hospital was purchased in April of 2000. Prior to that he was the leader of the now defunct Arcon Healthcare. That company, which was based on a “hospitals without beds'' concept filed for chapter 11 in 1998.
I'm going to add as needed to the original post (one has to be flexible....) just for continuity of the thought. The latest:
[Update, 2:26 p.m. Monday:]
Following the posting of this article on Friday, David Jarrard, a spokesman for Essent, sent an email to NashvillePost.com confirming the departure.
Jarrard disputed NashvillePost.com’s characterization of the shift saying, “the transition is not unfriendly.”
In the e-mail, Jarrard also said that “Connery has no options with Essent,” and “Essent staff were informed of the transition earlier [last] week.” While repeated attempts to contact Jarrard seeking clarification have so far gone unanswered, NashvillePost.com was informed that Connery does in fact have a sizable equity interest in the company, though the use of the word "options" was technically incorrect. Further, NashvillePost.com has been told that despite some staff’s having been informed, as of Friday afternoon the vast majority of Essent’s employees were unaware of the move.
According to Jarrard, discussions of a possible sale have been tabled for the time being noting that “every Essent hospital is profitable and growing in their markets."
Last thing first: Merrimack Hospital is sitting at $-1,498,033 for last period listed, according to American Hospital Directory (AHD.com).
Southwest Regional Medical Center -- $-212,615, and with a net of $860,296, Nashoba Valley Medical Center (57 beds) is over twice as profitable as this (PRMC) hospital (228 beds listed, what happened to the other 100 or so?).
Not "unfriendly"??? What, we haven't dug out the squirrel guns yet? The board has back-doored at least two offers that fell through and finally pitched Hud out. They aren't selling because there are no buyers. What kind of value does that ascribe to Essent??? You do the math:
No wonder Hud wants to take his money and run.....