Tenet Healthcare Corporation has reached a broad settlement agreement with the U.S. Department of Justice and other federal agencies that will conclude investigation by the department and a number of U.S. attorneys into Tenet’s receipt of Medicare outlier payments prior to 2003, physician financial arrangements, and Medicare coding issues. Tenet has agreed to pay $725 million plus interest over four years and is forgoing $175 million in Medicare payments for past services. Tenet admits to no illegal behavior but admits it made mistakes and says it has imposed higher standards for the corporation along with reforms in clinical quality, corporate culture, management, transparency, governance, compliance, and strategy.
The company has also entered into a multiyear corporate integrity agreement with HHS’ Office of Inspector General in exchange for not being excluded from federal programs. Among other changes, Tenet will retain an independent review organization to oversee compliance in the areas of Medicare coding, physician financial relationships, hospital charges, and quality of care. In addition, Tenet announced plans to divest 11 hospitals to enhance the company’s profitability, expand capital investments in its remaining 57 hospitals, and fund the settlement. Read the news release.
