Frist not involved in HCA sale

25 Jul 2006 // Senate Majority Leader Bill Frist, R-Tenn., did not participate in Monday's announced buyout of the health care company founded by his family, according to HCA spokesman Jeff Prescott.

However, Ross Baker, a Rutgers University political science professor, said Monday's HCA sale as well as a federal investigation into Sen. Frist's sale of HCA stock last summer will have political ramifications should Sen. Frist seek the GOP presidential nomination in 2008.

"I don't think a Republican rival will let him off the hook during a 2008 primary debate," Dr. Baker said. "I don't think (Monday's) sale allows him to put it completely behind him."

Nashville-based HCA Inc., the nation's largest for-profit hospital operator, accepted a bid to be purchased by a group of private investors for about $21.3 billion and the assumption of $11.7 billion in debt.

"Senator Frist has no comment on this matter because he owns no stock in the company, plays no role in the company's operations and has never served on the company's board," spokesman Matt Lehigh said.

Last year the U.S. Securities and Exchange Commission and federal prosecutors began an investigation, still ongoing, into Sen. Frist's sale of HCA stock. HCA's stock price dropped 9 percent soon after Sen. Frist sold his remaining holdings of HCA from a qualified blind trust.

Dr. Baker said HCA would be an issue because Sen. Frist's brother, Thomas, an HCA board member, is joining with the private equity groups purchasing the company.

Dr. Larry Sabato, a political scientist with the University of Virginia, said if Sen. Frist makes a run for the White House, HCA will be put under a microscope. Sen. Frist is not seeking re-election this year.

Taking the company private may make it harder for the media to write stories about HCA and Sen. Frist, Dr. Sabato said.

Dr. Baker said HCA may shadow Sen. Frist's political future as rivals might try to draw connections between the company and the role Sen. Frist played in shaping health care legislation during his tenure as Senate leader. The average voter probably will accept a simple explanation from Sen. Frist about his HCA involvement, Dr. Baker said.

Sen. Frist previously stated he sold his remaining HCA shares, once estimated to be worth more than $10 million, to rid himself of holdings in the company to avoid any conflicts of interest.

Naomi Seligman Steiner with Citizens for Responsibility and Ethics in Washington said her group has filed two complaints with the Senate Ethics Committee regarding Sen. Frist's sale of HCA stock.

"We are frustrated that Senator Frist is receiving a free pass on his so called blind trust," she said.

The Senate Ethics Committee did not return calls for comment.

Republican ethics lawyer Jan W. Baran said Monday's HCA sale should not affect the investigation into Sen. Frist's sale of his HCA holdings. It is not unusual for federal officials to take more than a year on an investigation, he said.

Mr. Baran said he expects the senator to be exonerated with little media fanfare.

"Accusations usually are reported on page one but dismissals can usually be found on page 26," he said.