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This hospital CFO is no turkey

November 24th, 2005

Happy thanksgiving! Well, in the spirit of this holiday, I'd like to share one news story that made some shareholders very, very thankful, I'm sure.

A very weird thing happened last week. Burke Whitman went from being CFO at Triad Hospitals to President/COO at HMA. That's not particularly weird, as Burke Whitman is a highly-sought after hospital exec who just returned from serving in Iraq.

burkewhitman

The weird thing was Wall Street's response. As a result of one man's job switch, Triad's stock lost more than 3% that day or $120,000,000 in market cap whereas HMA stock gained 8% or $460,000,000 in market cap.

No offense to Mr. Whitman, as he's a great exec and a great soldier, but $460,000,000? Assuming that Mr. Whitman will make a comparable salary to the rest of the HMA Exec Team ($570k - $1.5MM), he probably represents the best $1MM dollars HMA has ever spent.

turkey

Once in a while, you bump into people who think their hospital CFO is a turkey, but Mr. Whitman is anything but - just ask the shareholders of HMA who, I'm sure, are having a very happy thanksgiving.

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