Aug 21, 2017

Investor demands Community Health Systems fire CEO

Bob Herman

Investment firm ASL Strategic Value Fund has written a letter to the Community Health Systems board of directors that demands the immediate ouster of CEO Wayne Smith. ASL also urged the board to "claw back significant portions" of compensation from existing and retired executives as the for-profit hospital company continues to bleed losses and flirts with bankruptcy.

Key quote: "Management's previous missteps have resulted in billions of dollars of shareholder losses, all the while reaping tens of millions of dollars in compensation."

Why it matters: ASL's letter was dated Aug. 8 but was just publicized Monday — a week after our report on the collapse of CHS. The company did not respond, and now there's immense pressure on the board to do something. But one hospital industry observer told Axios that Smith has kept his job for so long because CHS' board is "populated with friends of Wayne."

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  1. Global: Total confirmed cases as of 1 p.m. ET: 622,450 — Total deaths: 28,794 — Total recoveries: 135,779.
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  3. Federal government latest: President Trump is reportedly considering a quarantine on New York, parts of New Jersey and Connecticut. He signed the $2 trillion coronavirus stimulus bill to provide businesses and U.S. workers economic relief.
  4. State updates: A group of Midwestern swing voters that supported President Trump's handling of the coronavirus less than two weeks ago is balking at his call for the U.S. to be "opened up" by Easter. Alaska is latest state to issue stay-at-home order — New York is trying to nearly triple its hospital capacity in less than a month.
  5. World updates: Italy reported 969 coronavirus deaths on Friday, the country's deadliest day. In Spain, over 1,300 people were confirmed dead between Thursday to Saturday.
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