Dive Brief:
- The American Federation of Teachers, which also represents nurses employed at Community Health Systems hospitals, is challenging CHS' planned acquisition of Health Management Associates.
- The AFT says the deal raises "serious legal and regulatory questions" because lead shareholders in both companies were the ones who set up the deal.
- AFT President Randi Weingarten argues that hedge fund Glenview Capital Management has a major conflict of interest due to its role as "most influential player on both sides of the transaction."
Dive Insight:
The AFT has done well to call attention to the potential conflict of interest here. The fact that Glenview owns 14.5% of HMAs shares and 9.9% of Health Management Associates, making it the majority owner of Community as well deserves a good, hard look by regulators. As top shareholders in both CHS and HMA, AFT should continue to speak up about the possibility of monkey business going on here.