‘Irreconcilable Differences’ Separate Two Directors from Tenet

Two members of Dallas-based Tenet Healthcare’s board of directors say they resigned because of “irreconcilable differences.”

The two, Randy Simpson and Matt Ripperger, serve as partners and co-heads of healthcare for New York-based hedge fund Glenview Capital Management. They were appointed to Tenet’s board of directors as “new independent directors” in January 2016.

Simpson and Ripperger wrote a joint letter stating they are stepping down “due to irreconcilable differences regarding significant matters impacting Tenet and its stakeholders.” The two also noted that Glenview management believed it was best for them to leave.

In the letter, they wrote: “Glenview remains fully committed to its ownership stake in Tenet and its desire to drive improved performance, culture and value.”

Glenview is Tenet’s largest shareholder, owning a reported $17.9 million–or 18 percent of Tenet’s shares. Tenet disclosed the resignations in a Form 8-K filing with the Securities and Exchange Commission.

In a 2016 Tenet press release, CEO Trevor Fetter said of Simpson and Ripperger: “We are pleased to add [their] expertise to our board as we work to create long-term value for all of our shareholders… Glenview has been a substantial investor in our company for nearly four years and we have appreciated their collaborative approach and constructive input. We look forward to the insights and contributions that Randy and Matt will bring to the board.”

Tenet declined to comment further about the situation.

Posted in Finance, News.