Tenet Healthcare

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Tenet Healthcare Corporation
Type Public company
Traded as NYSETHC
S&P 500 Component
Industry Healthcare
Founded 1967
Headquarters Dallas, Texas, U.S.
Key people Trevor Fetter
(President and CEO)
Dan Cancelmi
(Chief Financial Officer)
Keith Pitts
(Vice Chairman)
Britt Reynolds
(President, Hospital Operations)
Audrey Andrews
(SVP & General Counsel)
Services Hospital management
Revenue Increase US$ 11.102 billion (2013)[1]
Operating income Increase US$ 663 million (2013)[1]
Net income Decrease US$ (104) million (2013)[1]
Total assets Increase US$ 16.130 billion (2013)[1]
Total equity Decrease US$ 878 million (2013)[1]
Employees 103,711 (December 2013)[1]
Website http://www.tenethealth.com/pages/home.aspx

Tenet Healthcare Corporation is an investor-owned healthcare services company based in Dallas, Texas. Tenet owns and operates 77 acute-care hospitals in 14 states and 189 outpatient centers, with a majority of the hospitals located in California, Florida, Michigan and Texas. Headquartered in downtown Dallas, Tenet has more than 20,000 licensed beds and 100,000 employees.[1] The company’s hospitals offer acute care, radiology and respiratory therapy services, as well as operating and recovery rooms, clinical laboratories and pharmacies. In addition, Tenet hospitals offer intensive care, critical care and coronary care units; physical therapy; orthopedic, oncology, outpatient, organ transplant and surgical services.[2]

In 2008, Tenet launched Conifer Health Solutions, a healthcare services company that helps organizations strengthen their financial performance, transition from volume to value-based care, and enhance the consumer and patient healthcare experience, with the ultimate goal of improving the quality, cost and access to healthcare. Tenet combined its revenue cycle services group with Conifer’s client contact center, MedContact, to offer these services to non-Tenet hospitals and health systems. Conifer currently serves nearly 300 hospitals throughout the U.S. and processes $25 billion in net revenue annually.[3] [4]

In 2013, Tenet completed its acquisition of Vanguard Health Systems, Inc. (“Vanguard”), an investor-owned hospital company whose operations complemented Tenet's existing business.[5]

History[edit]

Tenet was founded in 1967 by three lawyers: Richard Eamer, Leonard Cohen and John Bedrosian and originally named National Medical Enterprises (NME) and originally headquartered in Los Angeles, California. The company spent its first decade building and acquiring medical facilities and related services. The company began seven construction projects in 1971, tripling in size within a year. In the mid-1980s, NME shifted its focus to specialty hospitals. After some scandals in the early 1990s (see below), NME unloaded its specialty facilities, reconfiguring itself as Tenet Healthcare Corporation in 1995, and again turned its focus to acute care. Tenet dominated the southern California market, and sought a foothold in south Florida, Louisiana and Texas, as well as the Philadelphia area. Eventually, Tenet owned 111 hospitals. In 2002, however, the company became entangled in scandals, as one of its hospitals came under scrutiny for its surgical practices and another was investigated in a kickback scheme (see below).[6] In 2003, Trevor Fetter became CEO and started the Commitment to Quality that same year, an initiative that included improvements in data gathering and statistics.[7] The company also hired a chief compliance officer to rebuild its ethics and compliance programs.[8] In 2004, Tenet also moved its headquarters from California to the northern suburban areas of Dallas. To improve its reputation, Tenet retained former Florida governor Jeb Bush to its board of directors in 2007.[9] Detailed financial reports on Tenet's patient mix, collection rates and accounts receivables that are required by the company as a condition of the 5-year corporate integrity agreement with the U.S. Department of Health & Human Services[10][11] have improved the company's transparency. As of 2009, the company has begun to turn around, with an operating revenue and net profit of $9 billion and $181 million, respectively. In 2009, Tenet stock became the number 2 performer on the S&P 500 after decreasing earlier in the year because of higher than average debt.[12] The company's largest hospital is Brookwood Medical Center located in Birmingham, Alabama with almost 600 beds.

Tenet acquired Vanguard Health Systems in 2013.[13]

Hospitals[edit]

Hospital Location Hospital Location
Atlanta Medical Center Atlanta, GA Los Alamitos Medical Center Los Alamitos, CA
Brookwood Medical Center Birmingham, AL Brookwood Medical Center Birmingham, AL
Centennial Medical Center Frisco, TX North Shore Medical Center-FMC Ft. Lauderdale, FL
Central Carolina Hospital Sanford, NC Nacogdoches Medical Center Nacogdoches, TX
Coastal Carolina Hospital Hardeeville, SC Palm Beach Gardens Medical Center Palm Beach Gardens, FL
Coral Gables Hospital Coral Gables, FL Palmetto General Hospital Hialeah, FL
Cypress Fairbanks Medical Center Houston, TX Piedmont Medical Center Rock Hill, SC
Delray Medical Center Delray Beach, FL Placentia-Linda Hospital Placentia, CA
Desert Regional Medical Center Palm Springs, CA Plaza Specialty Hospital Houston, TX
Des Peres Hospital St. Louis, MO Providence Memorial El Paso, TX
Doctors Hospital at White Rock Lake Dallas, TX Saint Francis Hospital-Memphis Memphis, TN
Doctors Hospital of Manteca Manteca, CA Saint Francis Hospital-Bartlett Bartlett, TN
Doctors Medical Center Modesto, CA Saint Louis University Hospital St. Louis, MO
East Cooper Medical Center Mount Pleasant, SC San Ramon Regional Medical Center San Ramon, CA
Fountain Valley Regional Hospital Fountain Valley, CA Sierra Medical Center El Paso, TX
Frye Regional Medical Center Hickory, NC Sierra Providence East Medical Center El Paso, TX
Good Samaritan Medical Center West Palm Beach, FL Sierra Vista Regional Medical Center San Luis Obispo, CA
Hahnemann University Hospital Philadelphia, PA South Fulton Medical Center East Point, GA
Hialeah Hospital Hialeah, FL Spalding Regional Medical Center Griffin, GA
Hilton Head Hospital Hilton Head, SC St. Christopher's Hospital for Children Philadelphia, PA
Houston Northwest Medical Center Houston, TX St. Mary's Medical Center West Palm Beach, FL
JFK Memorial Hospital Indio, CA Sylvan Grove Hospital Jackson, GA
Lake Pointe Medical Center Rowlett, TX Twin Cities Community Hospital Templeton, CA
Lakewood Regional Medical Center Lakewood, CA West Boca Medical Center Boca Raton, FL
Los Alamitos Medical Center Los Alamitos, CA West Boca Medical Center Boca Raton, FL
Placentia Linda Hospital Placentia, CA
West Boca Medical Center Boca Raton, FL

Acquired from Vanguard[edit]

Controversies[edit]

Psychiatric fraud[edit]

In the early 1990s as National Medical Enterprises, the company was accused of committing fraud by admitting thousands of psychiatric patients who did not need hospitalization and then charging these patients inflated prices.[14] In 1991, the federal government investigated the company for fraud and conspiracy.[15] In 1993, offices of the company were raided by law enforcement in an attempt to show that the company was defrauding patients and insurance companies.[16] In 1994, the company paid $2.5 million to settle lawsuits from 23 patients at its psychiatric hospitals.[17] Again in 1994, National Medical Enterprises settled fraud charges with the United States and 28 states involving payments of a record $380 million USD at the time and federal guilty pleas on eight criminal counts by two of its units. The company also agreed to a 5-year corporate integrity agreement with the U.S. Department of Health and Human Services.[18]

Unnecessary heart surgeries[edit]

In the late 1990s through the early 2000s, Redding Medical Center (at the time, a Tenet-owned hospital), was investigated for carrying out unnecessary heart surgeries on over 600 patients. To settle these allegations, Tenet agreed to pay a $54 million USD fine to the federal government and the state of California, without admitting wrongdoing.[19] This settlement did not preclude civil or criminal charges against individuals of the company.[19] In order for the hospital to continue receiving Medicare, Tenet was compelled by federal regulators to sell the hospital and it was subsequently renamed Shasta Regional Medical Center.[20] In 2004, Tenet paid an additional $395 million USD to 769 patients to settle litigation for the unnecessary surgeries.[21] The scandal and subsequent federal investigation are described in the book Coronary: A True Story of Medicine Gone Awry by author Stephen Klaidman.

Medicare fraud[edit]

In June 2006, Tenet agreed to pay $725 million in cash and give up $175 million of Medicare payments for a total of $900 million USD in fees to resolve claims it defrauded the federal government for over-billing Medicare claims during the 1990s. To finance the settlement, they sold 11 hospitals in four states including Memorial Medical Center (see below).[22][23][24] In September of that year, Tenet entered into a 5-year corporate integrity agreement with the U.S. Department of Health and Human Services.[10][11] That agreement expired on September 27, 2011.

Hurricane Katrina[edit]

In 2006, Dr. Anna Pou and nurses Lori Budo and Cheri Landry, who worked at Memorial Medical Center (a hospital owned at the time by Tenet Healthcare), in the aftermath of Hurricane Katrina, had been taken from their homes late at night in a highly publicized arrest on charges of second-degree murder in the deaths of four patients by Louisiana Attorney General Charles Foti.[25] In August 2007, a New Orleans grand jury declined to indict the three women. After the grand jury declined to return charges, a New Orleans judge expunged the women's arrest records. Dr. Pou sued Foti for defamation and damage to her career.[26] In June 2006, Tenet announced that they planned to sell Memorial Medical Center and three other hospitals in the greater New Orleans area.[27]

Tax dodging and lobbying[edit]

In December 2011, the non-partisan organization Public Campaign criticized Tenet Healthcare for spending $3.43 million on lobbying and not paying any taxes during 2008-2010, instead getting $48 million in tax rebates, despite making a profit of $415 million, and increasing executive pay by 19% to $24 million in 2010 for its top 5 executives.[28]

Awards and recognition[edit]

• 15 American Association for Respiratory Care Quality Respiratory Care Recognitions
• 94 American Heart Association Get With The GuidelinesSM Performance Achievement Awards
• 24 Blue Cross and Blue Shield National Blue Distinction Centers
• 214 CIGNA Quality Designations
• 8 HHS Organ Donation Medal of Honor Hospitals
• 18 Joint Commission Certified Primary Stroke Centers
• 14 Society of Chest Pain Center Accredited Chest Pain Centers
• 95 UnitedHealth Premium Specialty Center Designations
• 15 United Resource Network Centers of Excellence[29][dead link]

See also[edit]

References[edit]

  1. ^ a b c d e f g "Form 10-K for Year Ended December 31, 2013". Tenet Healthcare Corporation. Retrieved 17 April 2014. 
  2. ^ Yahoo Finance
  3. ^ "About Us". Conifer Health Solutions. Retrieved 17 April 2014. 
  4. ^ "Conifer Health Solutions". Tenet Healthcare Corporation. Retrieved 17 April 2014. 
  5. ^ Jacobson, Gary. "Tenet completes $4.3 billion acquisition of Vanguard Health Systems". The Dallas Morning News. Retrieved 17 April 2014. 
  6. ^ Best in Class: Why Tenet Is the Healthiest Play in Hospitals
  7. ^ Deep healing: How Trevor Fetter turned around Tenet Healthcare
  8. ^ Tenet Moves to Beef Up Compliance
  9. ^ Jeb Bush joins board of Tenet Healthcare
  10. ^ a b Corporate Integrity Agreement Final Document
  11. ^ a b Tenet Enters Into Five-Year Corporate Integrity Agreement
  12. ^ USA Today 1/4/10
  13. ^ Jacobson, Gary (1 October 2013). "Tenet completes $4.3 billion acquisition of Vanguard Health Systems". The Dallas Morning News (Dallas: A. H. Belo). Retrieved 11/3/2013. 
  14. ^ New York Times 7/31/92
  15. ^ New York Times 10/8/91
  16. ^ New York Times 8/27/93
  17. ^ New York Times 3/9/94
  18. ^ PEDIATRICS Vol. 94 No. 6 December 1994
  19. ^ a b USA Today 8/6/03
  20. ^ Tenet Healthcare Agrees to Sell Redding, Calif., Medical Center
  21. ^ New York Times 12/22/04
  22. ^ Tenet Healthcare Wins Dismissal of Racketeering Suit
  23. ^ Tenet Healthcare To Sell 11 Hospitals To Help Cover Cost Of Settlement
  24. ^ Tenet Healthcare Corporation to Pay U.S. more than $900 Million to Resolve False Claims Act Allegations
  25. ^ Coroner: Post-Katrina hospital death not homicide
  26. ^ The Deadly Choices at Memorial
  27. ^ Four Area Hospitals For Sale June 29, 2006
  28. ^ Portero, Ashley. "30 Major U.S. Corporations Paid More to Lobby Congress Than Income Taxes, 2008-2010". International Business Times. Archived from the original on 26 December 2011. Retrieved 26 December 2011. 
  29. ^ Tenet Hospital Recognition

External links[edit]