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Tenet settlement tag could reach $1 billion

Compliance Monitor, June 16, 2004

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The nation's second-largest for-profit hospital chain could pay more than $1 billion to settle federal investigations of claims that its physicians at Redding Medical Center (CA) performed unnecessary surgeries, according to a June 11 report in the Los Angeles Times.

Tenet Healthcare Corp., based in Santa Barbara, CA, is in preliminary discussions with government officials and lawyers representing more than 750 patients.

Tenet said in the report that talks were proceeding with the government, but that no deals were expected soon.

Government investigators have scrutinized the company's improper Medicare billing and other financial practices. Tenet has already agreed to pay $54 million to settle government allegations that two physicians at Redding performed unnecessary heart surgeries. And in March, Tenet announced that it had agreed to pay $30.75 million to settle an investigation involving a Tenet-owned hospital in Florida and a second nationwide probe.

Financial analysts have estimated that Tenet may eventually pay as much as $1 billion to settle lawsuits as well as federal investigations into areas including Medicare payments and physician relocation arrangements.

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