Rick Scott

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Rick Scott
45th Governor of Florida
Assumed office
January 4, 2011
LieutenantJennifer Carroll
Preceded byCharlie Crist
Personal details
BornRichard Lynn Scott
(1952-12-01) December 1, 1952 (age 60)
Bloomington, Illinois, U.S.
Political partyRepublican
Spouse(s)Ann Scott (née Frances Annette Holland)
Alma materUniversity of Missouri, Kansas City
Southern Methodist University
ProfessionLawyer; business executive
ReligionEvangelical Christian
Military service
AllegianceUnited States
Service/branchUnited States Department of the Navy Seal.svg United States Navy
Years of service1971–1974[1]
RankPetty officer, third class[2]
UnitUSS Glover
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Rick Scott
45th Governor of Florida
Assumed office
January 4, 2011
LieutenantJennifer Carroll
Preceded byCharlie Crist
Personal details
BornRichard Lynn Scott
(1952-12-01) December 1, 1952 (age 60)
Bloomington, Illinois, U.S.
Political partyRepublican
Spouse(s)Ann Scott (née Frances Annette Holland)
Alma materUniversity of Missouri, Kansas City
Southern Methodist University
ProfessionLawyer; business executive
ReligionEvangelical Christian
Military service
AllegianceUnited States
Service/branchUnited States Department of the Navy Seal.svg United States Navy
Years of service1971–1974[1]
RankPetty officer, third class[2]
UnitUSS Glover

Richard Lynn "Rick" Scott (born December 1, 1952) is an American businessman and politician who has been the 45th Governor of Florida since 2011. He served in the U.S. Navy and then went into business. He earned a business degree and law degree and joined a Dallas firm where he became partner. His net worth was almost $219 million USD in 2010, but by 2011 was estimated at $103 million.[3] He spent an estimated $75 million of his own money on his successful 2010 run for Governor of Florida.

In 1987, at age 34, he co-founded Columbia Hospital Corporation with two business partners; this merged with Hospital Corporation of America in 1989 to form Columbia/HCA and eventually became the largest private for-profit health care company in the U.S. He resigned as Chief Executive of Columbia/HCA in 1997 amid a controversy over the company's business and Medicare billing practices; the company ultimately admitted to fourteen felonies and agreed to pay the federal government over $600 million; Scott was not implicated.[4][5][6][7][8] Scott later became a venture capitalist.

Scott announced his intention to run for Governor of Florida in 2010. He defeated Bill McCollum in the Republican primary election and defeated Democrat Alex Sink in a close race in the 2010 Florida gubernatorial election.[9]


Early life and education

Rick Scott was born in Bloomington, Illinois, the second of five children born to financially struggling parents. He was raised in Kansas City, Missouri, where his father, Orba Scott, was a truck driver, and his mother, Esther, worked as a clerk at J.C. Penney, among other jobs.[10] Scott graduated from North Kansas City High School in 1970, [11] [12] [13] and then attended one year of community college and enlisted in the United States Navy, also in 1970 [14] . He was in the Navy for 29 months[15] and served on the USS Glover as a radar technician. He attended college on the GI Bill, later graduating from the University of Missouri–Kansas City with a bachelor's degree in business administration and earned a law degree by working his way through Southern Methodist University.[16]

In 1972, he married his high school sweetheart, Frances Annette "Ann" Holland; they have two daughters.[10] They live in Naples and are founding members of Naples Community Church.[17]

Early business career

Scott made his first foray into business while working his way through college and law school, initially buying and reviving two Kansas City donut shops.[18] After graduating from law school, Scott practiced law in Dallas, Texas. He was a partner at Johnson & Swanson, which was the largest law firm in Dallas at that time. A major client was Tom Hicks of HM Capital Partners.[citation needed]

Scott history at Columbia Hospital Corporation

In April 1987, Scott made his first attempt to buy the Hospital Corporation of America (HCA). While still a partner at Johnson & Swanson, Scott formed the HCA Acquisition Company with two former executives of Republic Health Corporation, Charles Miller and Richard Ragsdale.[19] With financing from Citicorp conditional on acquisition of HCA,[20] the proposed holding company offered $3.85 billion for 80 million shares at $47 each, intending to assume an additional $1.2 billion in debt, for a total $5 billion deal.[21] However, HCA declined the offer, and the bid was withdrawn.[22]

In 1988, Scott and Richard Rainwater, a financier from Fort Worth, each put up $125,000 in working capital in their new company, Columbia Hospital Corporation,[23] and borrowed the remaining money needed to purchase two struggling hospitals in El Paso for $60 million.[24] Then they acquired a neighboring hospital and shut it down. Within a year, the remaining two were doing much better.[15] By the end of 1989, Columbia Hospital Corporation owned four hospitals with a total of 833 beds.[24]

In 1992, Columbia made a stock purchase of Basic American Medical, which owned eight hospitals, primarily in southwestern Florida. In September 1993, Columbia did another stock purchase, worth $3.4 billion, of Galen Healthcare, which had been spun off by Humana Inc. several months earlier.[25] At the time, Galen had approximately 90 hospitals. After the purchase, Galen stockholders had 82 percent of the stock in the combined company, with Scott still running the company.[24]

In 1994, Columbia purchased Scott's former acquisition target, HCA, which had approximately 100 hospitals. In 1995, Columbia purchased Healthtrust, which had approximately 80 hospitals, primarily in rural communities. By 1997, Columbia/HCA had become the world's largest health care provider with more than 340 hospitals, 130 surgery centers, and 550 home health locations in 38 states and two foreign countries. With annual revenues in excess of $23 billion, the company employed more than 285,000 people, making it the seventh largest U.S. employer and the twelfth largest employer worldwide. Based on market capitalization, Columbia ranked in the top 50 companies in America and top 100 worldwide. That same year, the company was recognized by Business Week magazine as one of the 50 Best Performing Companies of the S&P 500.[citation needed]

Columbia/HCA fraud case details

On March 19, 1997, investigators from the FBI, the Internal Revenue Service and the Department of Health and Human Services served search warrants at Columbia/HCA facilities in El Paso and on dozens of doctors with suspected ties to the company.[26] The Columbia/HCA board of directors pressured Scott to resign as Chairman and CEO following the inquiry.[27] He was paid $9.88 million in a settlement. He also left owning 10 million shares of stock worth over $350 million.[28][29][30] In 1999, Columbia/HCA changed its name back to HCA, Inc.

In settlements reached in 2000 and 2002, Columbia/HCA pled guilty to 14 felonies and agreed to a $600+ million fine in the largest fraud settlement in US history. Columbia/HCA admitted systematically overcharging the government by claiming marketing costs as reimbursable, by striking illegal deals with home care agencies, and by filing false data about use of hospital space. They also admitted fraudulently billing Medicare and other health programs by inflating the seriousness of diagnoses and to giving doctors partnerships in company hospitals as a kickback for the doctors referring patients to HCA. They filed false cost reports, fraudulently billing Medicare for home health care workers, and paid kickbacks in the sale of home health agencies and to doctors to refer patients. In addition, they gave doctors "loans" never intending to be repaid, free rent, free office furniture, and free drugs from hospital pharmacies.[4][5][6][7][8]

In late 2002, HCA agreed to pay the U.S. government $631 million, plus interest, and pay $17.5 million to state Medicaid agencies, in addition to $250 million paid up to that point to resolve outstanding Medicare expense claims.[31] In all, civil law suits cost HCA more than $2 billion to settle, by far the largest fraud settlement in US history.[32]

Venture capitalist

After his departure from Columbia/HCA in 1997, Scott launched Richard L. Scott Investments, based in Naples, Florida (originally in Stamford, Connecticut[33]), which has stakes in health care, manufacturing and technology companies. Between 1998 and 2001, Scott purchased 50% of CyberGuard Corporation for approximately $10 million. Among his investors was Metro Nashville finance director David Manning.[33] In 2006, CyberGuard was sold to Secure Computing for over $300 million. In February 2005, Scott purchased Continental Structural Plastics, Inc. (CSP) in Detroit, Michigan. In July 2006, CSP purchased Budd Plastics from ThyssenKrupp, making Continental Structural Plastics the largest industrial composites molder in North America. In 2005-06, Scott provided the initial round of funding of $3 million to Alijor.com, which offered hospitals, physicians, and other health care providers the opportunity to post information about their prices, hours, locations, insurance accepted, and personal backgrounds online.[34] The company was founded with his daughter Allison.[33] In 2008, Alijor was sold to HealthGrades.

In May 2008, Scott purchased Drives, one of the world's leading independent designers and manufacturers of heavy-duty drive chain-based products and assemblies for industrial and agricultural applications and precision-engineered augers for agricultural, material handling, construction and related applications.[citation needed]

Scott reportedly has an interest in a chain of family fun centers/bowling alleys, S&S Family Entertainment, in Kentucky and Tennessee led by Larry Schmittou, one of baseball's legendary minor league owners.[35]

America's Health Network (AHN)

In July 1997, Columbia/HCA Healthcare purchased controlling interest in America's Health Network (AHN), the first 24-hour health care cable channel. They pulled out of the deal on the day of the closing because Scott and Vanderwater were terminated, which caused the immediate layoffs of more than 250 people in Orlando. Later that same year, Scott became majority owner of AHN.[36]

In 1998, Scott and former Columbia/HCA Healthcare President David Vandewater were the leaders in a group of investors that gave AHN a major infusion of cash so that the company could continue to operate. By early 1999, the network was available in 9.5 million American homes.[37]

In mid-1999 AHN merged with Fit TV, a subsidiary of Fox; the combination was renamed The Health Network.[38] Later that year, in a deal between News Corp., the owner of Fox Network, and WebMD, the latter received half-ownership of The Health Network. WebMD planned to relaunch The Health Network as WebMD Television in the fall of 2000, with new programming, but that company announced cutbacks and restructuring in September 2000, and in January 2001, Fox regained 100% ownership.[39] In September 2001, Fox Cable Networks Group sold The Health Network to its main rival, the Discovery Health Channel, for $155 million in cash plus a 10 percent equity stake in Discovery Health.[40]


Solantic, based in Jacksonville, Florida, was co-founded in 2001 by Rick Scott and Karen Bowling, a former television anchor whom Scott met after Columbia bought what is now Memorial Hospital (in Jacksonville, Florida) in 1995.[10] Solantic opened its first urgent care center in 2002. It provides urgent care services, immunizations, physicals, drug screening, and care for injured workers. The corporation attracts patients who do not have insurance, cannot get appointments with their primary care physicians, or do not have primary care physicians. Solantic is an alternative to the emergency room care that these types of patients often seek, or for not seeing a doctor at all.

In 2006, Scott said that his plans for Solantic were to establish a national brand of medical clinics.[10] In August 2007, the company received a $40 million investment from a private equity firm and said that it expected to open 35 clinics by the end of 2009, with annual revenues of $100 million once all these clinics were open, compared to $20 million at the time.[41] As of March 2009, Solantic had 24 centers, all located in Florida.[42]

Solantic was the target of an employment discrimination suit, which claimed that there had been a policy to not hire elderly or obese applicants, preferring 'mainstream' candidates. It was settled for an undisclosed sum on May 23, 2007. Scott responded to Salon regarding the claims of discrimination pointing out that "currently 53 percent of Solantic’s employees are white, 20 percent black and 17 percent Hispanic." [43]


In 2003, Scott invested $5.5 million in Pharmaca Integrative Pharmacies,[44] which operates drugstores/pharmacies that offer vitamins, herbal medicine, skin products, homeopathic medicines, and prescriptions. Other investors in Pharmaca include Tom Stemberg, founder and former CEO of Staples, and Arthur Blank, co-founder of Home Depot.

Other work

In the 1990s, Scott was a partner of George W. Bush as co-owner of the Texas Rangers.[45]

Political career

Conservatives for Patients' Rights

In February 2009, Scott founded Conservatives for Patients' Rights (CPR), which he said was intended to put pressure on Democrats to enact health care legislation based on free-market principles.[46] As of March, Scott had given about $5 million for a planned $20 million ad campaign by CPR.[47] CPR opposes the broad outlines of President Obama's health-care plans and has hired Creative Response Concepts (CRC), a public relations firm which previously worked with the Swift Boat Veterans for Truth among others.

2010 Florida gubernatorial campaign

Scott ran against Democratic nominee Alex Sink.[48] On April 9, 2010, Scott announced his candidacy for the 2010 Republican Party nomination for Governor of Florida.[49] Susie Wiles, former communications chief to Jacksonville Mayor John Peyton, served as his campaign manager, and Tony Fabrizio was his chief pollster. It was reported on May 7 that Scott's campaign had already spent $4.7 million on television and radio ads.[50] Scott's first video advertisement was released to YouTube on April 13.[51]

During the primary campaign, Scott's opponent, Bill McCollum, made an issue of Scott's role at Columbia/HCA. Scott countered that the FBI never targeted him. Marc Caputo of Miami Herald contended that a 1998 bill sponsored by McCollum would have made it more difficult to prosecute Medicare fraud cases, and was counter to his current views and allegations.[52] Scott won the August primary with approximately 47% percent of the vote, compared to 43% voting for McCollum, with McCollum conceding the race after midnight. By the October 25, 2010 Tampa debate between Scott and Alex Sink, Scott had spent $60 million of his own money on the campaign compared to Democratic opponent Alex Sink's reported $28 million.[53] The Fort Myers News Press quoted Scott as saying in total he spent $78 million of his own money on the campaign, although other figures indicate he spent slightly over $75 million. He won in the general election for Governor of Florida, defeating Sink by around 68,000 votes, or 1.29%.[54] He assumed office as the 45th Governor of Florida on January 4, 2011.

Redistricting amendments

In the 2010 elections, Florida voters passed constitutional amendments banning gerrymandering of congressional and legislative districts.[55] In February 2011, Scott withdrew a request to the United States Department of Justice to approve these amendments, which, according to The Miami Herald, might delay the implementation of the redistricting plan because the Voting Rights Act requires preclearance of state laws likely to have an impact on minority representation. Scott said he wants to make sure that redistricting is done properly.[56] Several advocacy groups sued Scott in federal court to compel Scott to resubmit the acts to the Justice Department.[57] Richard Pildes, a professor of constitutional law and expert on election law at New York University School of Law, called Scott's actions "extraordinary" because Scott was "essentially using a federal law obligation that binds the states to attempt to avoid enforcing a state law that he apparently would prefer the state had not adopted."[58]

Governor of Florida 2011-present

Rejection of federal funding for high-speed rail

On February 16, 2011, Scott rejected $2.3 billion in federal funding to develop high-speed rail between Tampa and Orlando. Scott cited concerns about ridership and cost overruns.[59] In response, a veto-proof majority in the Florida Senate approved a letter rebuking Scott and asking the Department of Transportation to continue funding.[60][61] On February 18, United States Senators from Rhode Island Jack Reed and Sheldon Whitehouse sent a letter to Ray LaHood, the United States Secretary of Transportation, to ask LaHood to redirect some of the rail funding intended for Florida to Rhode Island. Reed and Whitehouse said the money would improve Rhode Island's rail system and provide jobs in the state.[62]

On March 1, 2011, two state senators filed a petition with the Florida Supreme Court to compel Scott to accept the rail funds on the grounds Scott lacked constitutional authority to reject funds which had been approved by a prior legislature.[63] On March 4, the Florida Supreme Court held that Scott's rejection of the rail funds did not violate the Florida Constitution.[64]

Port of Miami development

Following his rejection of Central Florida's High Speed Rail project, Scott moved to have the Florida Department of Transportation amend its work plan to include $77 million for dredging the Port of Miami to a depth of 50 feet. Once the port is dredged, Panamax-sized vessels coming through the expanded Panama Canal could load and unload cargo there.[65]

Florida law requiring drug screening for welfare applicants

In June 2011 Scott signed a bill requiring those seeking welfare under the federal Temporary Assistance for Needy Families program to submit to drug screenings. Applicants who fail a drug test may name another person to receive benefits for their children.[66] In an interview with CNN host Don Lemon, Scott said, "Studies show that people that are on welfare are higher users of drugs than people not on welfare" and "the bottom line is, if they're not using drugs, it's not an issue". Government researchers in 1999-2000 reported "that 9.6 percent of people in families receiving some type of government assistance reported recent drug use, compared to 6.8 percent among people in families receiving no government assistance at all."[67] However preliminary figures show that just 2.5% of applicants tested positive for drugs, with 2% declining to take the test, while the Justice Department estimates that around 6% of Americans overall do drugs.[68]

Steering college majors

In December 2012, after a year of education cuts, Scott announced a plan to encourage students to pursue majors in engineering and science by reducing tuition for some majors.[69]

Election history

2010 Florida Gubernatorial race

General Election Results[70]
RepublicanRick Scott & Jennifer Carroll2,619,33548.87%
DemocraticAlex Sink & Rod Smith2,557,78547.72%
IndependentPeter Allen & John E Zanni123,8312.31%
No partyMichael E. Arth & Al Krulick18,6440.35%
No partyFarid Khavari & Darcy G. Richardson7,4870.14%
No partyC. C. Reed & Larry Waldo, Sr.18,8420.35%
No partyDaniel Imperato & Karl C.C. Behm13,6900.26%
No partyJosue Larose & Valencia St Louis (write-in)1210.00%
Republican hold

Source: Florida Division of Elections



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Party political offices
Preceded by
Charlie Crist
Republican nominee for Governor of Florida
Most recent
Political offices
Preceded by
Charlie Crist
Governor of Florida
United States order of precedence
Preceded by
Joe Biden
as Vice President
Order of Precedence of the United States
Within Florida
Succeeded by
Mayor of city
in which event is held
Succeeded by
Otherwise John Boehner
as Speaker of the House of Representatives
Preceded by
Rick Snyder
as Governor of Michigan
Order of Precedence of the United States
Outside Florida
Succeeded by
Rick Perry
as Governor of Texas