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Profile: Tenet Healthcare Corp.
Tenet Healthcare Corp. was a participant or observer in the following events:
Mark Colombo, 57, is told by a heart specialist at Redding Medical Center in California, that he needs a double bypass surgery. When he asks a surgeon for a second opinion, he is told the problem is so severe that he shouldn’t go home until after it has been done. The following day, he undergoes surgery. But months later, a Sacramento cardiologist tells him the operation was probably not necessary. In 2004, Colombo, along with more than 769 other heart patients, will sue Tenet Healthcare Corp., which owns the hospital, and settle for $395 million (see December 21, 2004). The company had allegedly performed hundreds of unnecessary bypass surgeries and other medical procedures between 1992 and 2002. [San Francisco Chronicle, 12/22/2004]
Tenet Healthcare Corp. settles with more than 769 patients over allegations that one of its hospitals, Redding Medical Center in California, performed hundreds of unnecessary operations on its patients between 1992 and 2002. A 2002 FBI affidavit alleged that perhaps as many as 50 percent of the heart surgeries and tests performed by doctors at the hospital were not necessary. Of those, as many as a quarter did not even involve patients who had serious heart issues. According to Russell Reiner, the attorney who represented about half the patients, at least 20 patients died after undergoing unnecessary heart surgery at the hospital, while other patients suffered strokes, brain damage, or amputations. Under the terms of the settlement agreement, Tenet will pay the former patients $395 million. [San Francisco Chronicle, 12/22/2004]
Tenet Healthcare Corp., the country’s second largest hospital chain, agrees to a $900 million settlement with the Justice Department over allegations that it defrauded Medicare. In 2003, the company was charged with violating the False Claims Act. The government alleged that Tenet had billed for services not rendered, inflated reimbursable costs, and paid kickbacks to doctors for referrals. The company, which admits no guilt—only that it made billing “mistakes”—will pay $725 million over a four-year period to resolve the billing dispute and will forfeit its right to collect $175 million in Medicare payments for past services. Wall Street analysts had expected the amount to be well over a billion. [Reuters, 6/29/2006; US Department of Justice, 6/29/2006; Tenet Healthcare Corp., 6/29/2006 ]
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