3 Columbia / HCA Execs Plead Not Guilty

Three Columbia/HCA Healthcare Corp. executives pleaded not guilty to charges they cheated the government’s health programs, as the hospital chain’s chief predicted more indictments. A hearing was set for Sept. 4 in Fort Myers, Fla., for Robert Whiteside, 47, of Brentwood, Tenn.; Jay A. Jarrell, 42, of Fort Myers; and Michael T. Neeb, 35, of Jacksonville, Fla. Whiteside, an executive from Columbia’s Nashville headquarters, and the two regional Florida officials were arraigned on a five-count indictment charging them with conspiracy, fraud and making false statements. As the men prepared to issue their pleas, Columbia Chairman and Chief Executive Thomas F. Frist Jr. acknowledged that more charges were likely. Frist said it might take as long as two years to get the company in order. The three defendants are accused of conspiring to charge $1.8 million in illegal bills to Medicare and the military’s version of the health-care program at Fawcett Memorial Hospital in Port Charlotte, Fla. If convicted, they each face up to 25 years in prison and $1.25 million in fines. Columbia shares fell 63 cents to close at $33 on the New York Stock Exchange.