Rick Scott (Wikipedia Info)

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Rick Scott
From Wikipedia, the free encyclopedia

Richard Lynn "Rick" Scott
(born December 1, 1952) is a Rick Scott
businessman and the 45th and
current Governor of the U.S. state
of Florida. He served in the U.S.
Navy and then went into business.
He earned a business degree and
law degree and joined a Dallas
firm where he became partner.
His net worth was almost $219
million USD in 2010, but by 2011
was estimated at $103 million.[3]
He spent an estimated $75 million
of his own money on his
successful 2010 run for Governor
of Florida.

In 1987, at age 34, he co-founded
Columbia Hospital Corporation
with two business partners; this
merged with Hospital Corporation
of America in 1989 to form 45th Governor of Florida
Columbia/HCA and eventually
Incumbent
became the largest private for-
profit health care company in the Assumed office
U.S. He resigned as Chief January 4, 2011
Executive of Columbia/HCA in
Lieutenant Jennifer Carroll
1997 amid a controversy over the
company's business and Medicare Preceded by Charlie Crist
billing practices; the company Personal details
ultimately admitted to fourteen
felonies and agreed to pay the Born December 1, 1952
federal government over $600 Bloomington, Illinois, U.S.
million; Scott was not implicated. Political party Republican
[4][5][6][7][8]
Scott later became a
venture capitalist. Spouse(s) Ann Scott (née Frances Annette Holland)
(http://www.tampabay.com/news/politics/elections/review
Scott announced his intention to -of-rick-scotts-financial-holdings-shows-complex-
run for Governor of Florida in network-beyond-his/1106601)
2010. He defeated Bill McCollum
in the Republican primary Children 2
election and defeated Democrat Alma mater University of Missouri, Kansas City
Alex Sink in a close race in the Southern Methodist University
2010 Florida gubernatorial
Profession Lawyer; business executive
election.[9]
Religion Evangelical Christian

http://en.wikipedia.org/wiki/Rick_Scott 6/7/2012


Military service

Contents Allegiance United States
Service/branch United States Navy
Ŷ 1 Early life and Years of 1971–1974[1]
education
Ŷ 2 Early business career service
Ŷ 2.1 Scott history at Rank Petty officer, third class[2]
Columbia Hospital
Unit USS Glover
Corporation
Ŷ 2.2
Columbia/HCA
fraud case details
Ŷ 2.3 Venture
capitalist
Ŷ 2.4 America's
Health Network
(AHN)
Ŷ 2.5 Solantic
Ŷ 2.6 Pharmaca
Ŷ 2.7 Other work
Ŷ 3 Political career
Ŷ 3.1 Conservatives
for Patients' Rights
Ŷ 3.2 2010 Florida
gubernatorial
campaign
Ŷ 3.3 Redistricting
amendments
Ŷ 3.4 Rejection of
federal funding for
high-speed rail
Ŷ 3.5 Port of Miami
development
Ŷ 3.6 Florida law
requiring drug
screening for
welfare applicants
Ŷ 4 Election history
Ŷ 4.1 2010 Florida
Gubernatorial race
Ŷ 5 Other
Ŷ 6 References
Ŷ 7 External links



Early life and education
Rick Scott was born in Bloomington, Illinois, the second of five children born to financially struggling
parents. He was raised in Kansas City, Missouri, where his father, Orba Scott, was a truck driver, and his
mother, Esther, worked as a clerk at J.C. Penney, among other jobs.[10] Scott graduated from high school
in 1970, and then attended one year of community college after which he enlisted in the United States
Navy. He was in the Navy for 29 months[11] and served on the USS Glover as a radar technician. He
attended college on the GI Bill, later graduating from the University of Missouri–Kansas City with a
bachelor's degree in business administration and earned a law degree by working his way through
Southern Methodist University.[12]

In 1972, he married his high school sweetheart, Frances Annette "Ann" Holland; they have two
daughters.[10] They live in Naples and are founding members of Naples Community Church.[13]

Early business career
Scott made his first foray into business while working his way through college and law school, initially
buying and reviving two Kansas City donut shops. After graduating from law school, Scott practiced
law in Dallas, Texas. He was a partner at Johnson & Swanson, which was the largest law firm in Dallas
at that time. A major client was Tom Hicks of HM Capital Partners.[citation needed]

Scott history at Columbia Hospital Corporation
In April 1987, Scott made his first attempt to buy the Hospital Corporation of America (HCA). While
still a partner at Johnson & Swanson, Scott formed the HCA Acquisition Company with two former
executives of Republic Health Corporation, Charles Miller and Richard Ragsdale.[14] With financing
from Citicorp conditional on acquisition of HCA,[15] the proposed holding company offered $3.85
billion for 80 million shares at $47 each, intending to assume an additional $1.2 billion in debt, for a
total $5 billion deal.[16] However, HCA declined the offer, and the bid was withdrawn.[17]

In 1988, Scott and Richard Rainwater, a financier from Fort Worth, each put up $125,000 in working
capital in their new company, Columbia Hospital Corporation,[18] and borrowed the remaining money
needed to purchase two struggling hospitals in El Paso for $60 million.[19] Then they acquired a
neighboring hospital and shut it down. Within a year, the remaining two were doing much better.[11] By
the end of 1989, Columbia Hospital Corporation owned four hospitals with a total of 833 beds.[19]

In 1992, Columbia made a stock purchase of Basic American Medical, which owned eight hospitals,
primarily in southwestern Florida. In September 1993, Columbia did another stock purchase, worth $3.4
billion, of Galen Healthcare, which had been spun off by Humana Inc. several months earlier.[20] At the
time, Galen had approximately 90 hospitals. After the purchase, Galen stockholders had 82 percent of
the stock in the combined company, with Scott still running the company.[19]

In 1994, Columbia purchased Scott's former acquisition target, HCA, which had approximately 100
hospitals. In 1995, Columbia purchased Healthtrust, which had approximately 80 hospitals, primarily in
rural communities. By 1997, Columbia/HCA had become the world's largest health care provider with
more than 340 hospitals, 130 surgery centers, and 550 home health locations in 38 states and two foreign
countries. With annual revenues in excess of $23 billion, the company employed more than 285,000
people, making it the seventh largest U.S. employer and the twelfth largest employer worldwide. Based



on market capitalization, Columbia ranked in the top 50 companies in America and top 100 worldwide.
That same year, the company was recognized by Business Week magazine as one of the 50 Best
Performing Companies of the S&P 500.[citation needed]

Columbia/HCA fraud case details
On March 19, 1997, investigators from the FBI, the Internal Revenue Service and the Department of
, , g , p
Health and Human Services served search warrants at Columbia/HCA facilities in El Paso and on
dozens of doctors with suspected ties to the company.[21] The Columbia/HCA board of directors
[21]

pressured Scott to resign as Chairman and CEO following the inquiry.[22] He was paid $9.88 million in a
[22]
p
settlement. He also left owning 10 million shares of stock worth over $350 million.[23][24][25] In 1999,
g [23][24][25]

Columbia/HCA
Columbia/HCA changed its name back to HCA, Inc.
/

In settlements reached in 2000 and 2002, Columbia/HCA pled g y to 14 felonies and agreed to a
, p guilty g
$600+ million fine in the largest fraud settlement in US history. Columbia/HCA admitted systematically
g n y y y
overcharging the g
g g government by claiming marketing costs as reimbursable, by striking illegal deals with
y g g , y g g
home care agencies, and by filing false data about use of hospital space. They also admitted fraudulently
g , y g p p y
billing Medicare and other health programs by inflating the seriousness of diagnoses and to giving
g p g y g g g g
doctors partnerships in company hospitals as a kickback for the doctors referring p
p p p y p g patients to HCA. They
y
filed false cost reports, fraudulently billing Medicare for home health care workers, and p kickbacks
p , y g , paid
in the sale of home health agencies and to doctors to refer patients. In addition, they gave doctors
g p , yg
"loans" never intending to be repaid, free rent, free office furniture, and free drugs from hospital
pharmacies.[4][5][6][7][8]
[4][5][6][7][8]

In late 2002, HCA agreed to p y the U.S. g
, g pay government $631 million, plus interest, and p y $17.5 million
t , p interest, , pay
to state Medicaid agencies, in addition to $250 million paid up to that point to resolve outstanding
g ,
Medicare expense claims.[26] In all, civil law suits cost HCA more than $2 billion to settle, by far the
[
,
largest fraud settlement in US history.[27]
[27]

Venture capitalist
After his departure from Columbia/HCA in 1997, Scott launched Richard L. Scott Investments, based
in Naples, Florida (originally in Stamford, Connecticut[28]), which has stakes in health care,
manufacturing and technology companies. Between 1998 and 2001, Scott purchased 50% of
CyberGuard Corporation for approximately $10 million. Among his investors was Metro Nashville
finance director David Manning.[28] In 2006, CyberGuard was sold to Secure Computing for over $300
million. In February 2005, Scott purchased Continental Structural Plastics, Inc. (CSP) in Detroit,
Michigan. In July 2006, CSP purchased Budd Plastics from ThyssenKrupp, making Continental
Structural Plastics the largest industrial composites molder in North America. In 2005-06, Scott
provided the initial round of funding of $3 million to Alijor.com, which offered hospitals, physicians,
and other health care providers the opportunity to post information about their prices, hours, locations,
insurance accepted, and personal backgrounds online.[29] The company was founded with his daughter
Allison.[28] In 2008, Alijor was sold to HealthGrades.

In May 2008, Scott purchased Drives, one of the world's leading independent designers and
manufacturers of heavy-duty drive chain-based products and assemblies for industrial and agricultural
applications and precision-engineered augers for agricultural, material handling, construction and related
applications.[citation needed]



Scott reportedly has an interest in a chain of family fun centers/bowling alleys, S&S Family
Entertainment, in Kentucky and Tennessee led by Larry Schmittou, one of baseball's legendary minor
league owners.[30]

America's Health Network (AHN)
In July 1997, Columbia/HCA Healthcare purchased controlling interest in America's Health Network
(AHN), the first 24-hour health care cable channel. They pulled out of the deal on the day of the closing
because Scott and Vanderwater were terminated, which caused the immediate layoffs of more than 250
people in Orlando. Later that same year, Scott became majority owner of AHN.[31]

In 1998, Scott and former Columbia/HCA Healthcare President David Vandewater were the leaders in a
group of investors that gave AHN a major infusion of cash so that the company could continue to
operate. By early 1999, the network was available in 9.5 million American homes.[32]

In mid-1999 AHN merged with Fit TV, a subsidiary of Fox; the combination was renamed The Health
Network.[33] Later that year, in a deal between News Corp., the owner of Fox Network, and WebMD, the
latter received half-ownership of The Health Network. WebMD planned to relaunch The Health
Network as WebMD Television in the fall of 2000, with new programming, but that company
announced cutbacks and restructuring in September 2000, and in January 2001, Fox regained 100%
ownership.[34] In September 2001, Fox Cable Networks Group sold The Health Network to its main
rival, the Discovery Health Channel, for $155 million in cash plus a 10 percent equity stake in
Discovery Health.[35]

Solantic
Solantic, based in Jacksonville, Florida, was co-founded in 2001 by Rick Scott and Karen Bowling, a
former television anchor whom Scott met after Columbia bought what is now Memorial Hospital (in
Jacksonville, Florida) in 1995.[10] Solantic opened its first urgent care center in 2002. It provides urgent
care services, immunizations, physicals, drug screening, and care for injured workers. The corporation
attracts patients who do not have insurance, cannot get appointments with their primary care physicians,
or do not have primary care physicians. Solantic is an alternative to the emergency room care that these
types of patients often seek, or for not seeing a doctor at all.

In 2006, Scott said that his plans for Solantic were to establish a national brand of medical clinics.[10] In
August 2007, the company received a $40 million investment from a private equity firm and said that it
expected to open 35 clinics by the end of 2009, with annual revenues of $100 million once all these
clinics were open, compared to $20 million at the time.[36] As of March 2009, Solantic had 24 centers,
all located in Florida.[37]

Solantic was the target of an employment discrimination suit, which claimed that there had been a policy
to not hire elderly or obese applicants, preferring 'mainstream' candidates. It was settled for an
undisclosed sum on May 23, 2007. Scott responded to Salon regarding the claims of discrimination
pointing out that "currently 53 percent of Solantic’s employees are white, 20 percent black and 17
percent Hispanic." [38]



Pharmaca

In 2003, Scott invested $5.5 million in Pharmaca Integrative Pharmacies,[39] which operates
drugstores/pharmacies that offer vitamins, herbal medicine, skin products, homeopathic medicines, and
prescriptions. Other investors in Pharmaca include Tom Stemberg, founder and former CEO of Staples,
and Arthur Blank, co-founder of Home Depot.

Other work

In the 1990s, Scott was a partner of George W. Bush as co-owner of the Texas Rangers.[40]

Political career
Conservatives for Patients' Rights
Main article: Conservatives for Patients' Rights

In February 2009, Scott founded Conservatives for Patients' Rights (CPR), which he said was intended
to put pressure on Democrats to enact health care legislation based on free-market principles.[41] As of
March, Scott had given about $5 million for a planned $20 million ad campaign by CPR.[42] CPR
opposes the broad outlines of President Obama's health-care plans and has hired Creative Response
Concepts (CRC), a public relations firm which previously worked with the Swift Boat Veterans for
Truth among others.

2010 Florida gubernatorial campaign
Main article: Florida gubernatorial election, 2010

Scott ran against Democratic nominee Alex Sink.[43] On April 9, 2010, Scott announced his candidacy
for the 2010 Republican Party nomination for Governor of Florida.[44] Susie Wiles, former
communications chief to Jacksonville Mayor John Peyton, served as his campaign manager, and Tony
Fabrizio was his chief pollster. It was reported on May 7 that Scott's campaign had already spent $4.7
million on television and radio ads.[45] Scott's first video advertisement was released to YouTube on
April 13.[46]

During the primary campaign, Scott's opponent, Bill McCollum, made an issue of Scott's role at
Columbia/HCA. Scott countered that the FBI never targeted him. Marc Caputo of Miami Herald
contended that a 1998 bill sponsored by McCollum would have made it more difficult to prosecute
Medicare fraud cases, and was counter to his current views and allegations.[47] Scott won the August
primary with approximately 47% percent of the vote, compared to 43% voting for McCollum, with
McCollum conceding the race after midnight. By the October 25, 2010 Tampa debate between Scott and
Alex Sink, Scott had spent $60 million of his own money on the campaign compared to Democratic
opponent Alex Sink's reported $28 million.[48] The Fort Myers News Press quoted Scott as saying in
total he spent $78 million of his own money on the campaign, although other figures indicate he spent
slightly over $75 million. He won in the general election for Governor of Florida, defeating Sink by
around 68,000 votes, or 1.29%.[49] He assumed office as the 45th Governor of Florida on January 4,
2011.



Redistricting amendments
In the 2010 elections, Florida voters passed constitutional amendments banning gerrymandering of
congressional and legislative districts.[50] In February 2011, Scott withdrew a request to the United
States Department of Justice to approve these amendments, which, according to The Miami Herald,
might delay the implementation of the redistricting plan because the Voting Rights Act requires
preclearance of state laws likely to have an impact on minority representation. Scott said he wants to
make sure that redistricting is done properly.[51] Several advocacy groups sued Scott in federal court to
compel Scott to resubmit the acts to the Justice Department.[52] Richard Pildes, a professor of
constitutional law and expert on election law at New York University School of Law, called Scott's
actions "extraordinary" because Scott was "essentially using a federal law obligation that binds the states
to attempt to avoid enforcing a state law that he apparently would prefer the state had not adopted."[53]

Rejection of federal funding for high-speed rail
On February 16, 2011, Scott rejected $2.3 billion in federal funding to develop high-speed rail between
Tampa and Orlando. Scott cited concerns about ridership and cost overruns.[54] In response, a veto-proof
majority in the Florida Senate approved a letter rebuking Scott and asking the Department of
Transportation to continue funding.[55][56] On February 18, United States Senators from Rhode Island
Jack Reed and Sheldon Whitehouse sent a letter to Ray LaHood, the United States Secretary of
Transportation, to ask LaHood to redirect some of the rail funding intended for Florida to Rhode Island.
Reed and Whitehouse said the money would improve Rhode Island's rail system and provide jobs in the
state.[57]

On March 1, 2011, two state senators filed a petition with the Florida Supreme Court to compel Scott to
accept the rail funds on the grounds Scott lacked constitutional authority to reject funds which had been
approved by a prior legislature.[58] On March 4, the Florida Supreme Court held that Scott's rejection of
the rail funds did not violate the Florida Constitution.[59]

Port of Miami development
Following his rejection of Central Florida's High Speed Rail project, Scott moved to have the Florida
Department of Transportation amend its work plan to include $77 million for dredging the Port of
Miami to a depth of 50 feet. Once the port is dredged, Panamax-sized vessels coming through the
expanded Panama Canal could load and unload cargo there.[60]

Florida law requiring drug screening for welfare applicants
In June 2011 Scott signed a bill requiring those seeking welfare under the federal Temporary
Assistance for Needy Families program to submit to drug screenings. Applicants who fail a drug test
may name another person to receive benefits for their children.[61] In an interview with CNN host Don
Lemon, Scott said, "Studies show that people that are on welfare are higher users of drugs than people
not on welfare" and "the bottom line is, if they're not using drugs, it's not an issue". Government
researchers in 1999-2000 reported "that 9.6 percent of people in families receiving some type of
government assistance reported recent drug use, compared to 6.8 percent among people in families
receiving no government assistance at all."[62] However preliminary figures show that just 2.5% of
applicants tested positive for drugs, with 2% declining to take the test, while the Justice Department
estimates that around 6% of Americans overall do drugs.[63]



Election history
2010 Florida Gubernatorial race

General Election Results[64]
Party Candidate Votes Percentage
Republican Rick Scott & Jennifer Carroll 2,619,335 48.87%
Democratic Alex Sink & Rod Smith 2,557,785 47.72%
Independence Peter Allen & John E Zanni 123,831 2.31%
No party Michael E. Arth & Al Krulick 18,644 0.35%
No party Farid Khavari & Darcy G. Richardson 7,487 0.14%
No party C. C. Reed & Larry Waldo, Sr. 18,842 0.35%
No party Daniel Imperato & Karl C.C. Behm 13,690 0.26%
Josue Larose & Valencia St Louis (write
No party 121 0.00%
-in)
Totals 5,359,735 100%
Republican hold

Source: Florida Division of Elections (http://enight.elections.myflorida.com/contestdetails.aspx?
con=160000)

Other
Ŷ Member of the National Board of the United Way, 1997[65] to 2003.[66]
Ŷ Time Magazine, America's 25 Most Influential People, June 1996[11]
Ŷ Financial World magazine, silver award for the CEO of the Year, 1995[67]
Ŷ Columbia University, School of Nursing, Second Century Award for Excellence in Health Care,
1995[67]

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External links
Ŷ Governor Rick Scott (http://www.flgov.com/) official Florida government site
Ŷ Biography (http://www.nga.org/portal/site/nga/menuitem.29fab9fb4add37305ddcbeeb501010a0/?
vgnextoid=40354d61132cc210VgnVCM1000005e00100aRCRD) at the National Governors
Association
Ŷ Biography (http://www.votesmart.org/bio.php?can_id=124204) , interest group ratings
(http://www.votesmart.org/issue_rating_category.php?can_id=124204) , public statements
(http://www.votesmart.org/speech.php?can_id=124204) , vetoes
(http://www.votesmart.org/official_veto.php?can_id=124204) and campaign finances
(http://www.votesmart.org/finance.php?can_id=124204) at Project Vote Smart
Ŷ Biography (http://www.whorunsgov.com/Profiles/Rick_Scott) at WhoRunsGov.com at The
Washington Post
Ŷ Issue positions and quotes (http://www.ontheissues.org/Rick_Scott.htm) at On the Issues
Ŷ Campaign contributions (http://www.followthemoney.org/database/uniquecandidate.phtml?
uc=143729) at FollowTheMoney.org
Ŷ Appearances (http://www.c-spanvideo.org/richardscott) on C-SPAN programs



Ŷ Collected news and commentary
(http://topics.nytimes.com/top/reference/timestopics/people/s/richard_l_scott) at The New York
Times
Ŷ Profile (http://www.nndb.com/people/640/000203031) at Notable Names Database

Party political offices
Republican nominee for Governor of
Preceded by
Florida Most recent
Charlie Crist
2010
Political offices
Preceded by Governor of Florida
Incumbent
Charlie Crist 2011–present
United States order of precedence
Succeeded by
Mayor of city
Preceded by Order of Precedence of the United in which event is held
Joe Biden States
as Vice President Within Florida Succeeded by
Otherwise John Boehner
as Speaker of the House of Representatives
Preceded by Order of Precedence of the United Succeeded by
Rick Snyder States Rick Perry
as Governor of Michigan Outside Florida as Governor of Texas

Retrieved from "http://en.wikipedia.org/w/index.php?title=Rick_Scott&oldid=491786659"
Categories: 1952 births American Christians Former Presbyterians American businesspeople
Eagle Scouts Florida Republicans Governors of Florida Living people
Republican Party state governors of the United States Southern Methodist University alumni
United States Navy sailors University of Missouri–Kansas City alumni

Ŷ This page was last modified on 10 May 2012 at 12:21.
Ŷ Text is available under the Creative Commons Attribution-ShareAlike License; additional terms
may apply. See Terms of use for details.
Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit
organization.


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