Corporate Compliance

SEC may file civil charges against Tenet

Compliance Monitor, May 4, 2005

The Securities and Exchange Commission (SEC) told Tenet Healthcare Corp. and some of its former executives that it may file civil charges over the hospital chain's Medicare billing and managed care contract practices, the Associated Press (AP) reported April 28.

According to a press release from Tenet, the SEC told the Dallas-based company that the possible actions stem from disclosure of stop-loss payments under managed care contracts and outlier payments.

Tenet, one of the nation's largest hospital chains, has over the past few years faced numerous lawsuits and federal investigations into Medicare payments, physician relocation arrangements, unnecessary cardiac procedures, and other issues.

Executives involved in the possible action left their positions in 2002 and 2003 after serving as Tenet's chief executive officer, chief operating officer, general counsel, chief financial officer, chief accounting officer, and senior vice president of government programs, AP reported.

Tenet officials said they may respond to the allegations before the SEC makes a formal recommendation. The company also said it is cooperating with the SEC.

To read Tenet's press release, click here.

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