Tenet Healthcare Corp. history, profile and corporate video
Tenet Healthcare Corp. provides health care services. The company through its subsidiaries and affiliates owns and operates acute care hospitals, ambulatory surgery centers, diagnostic imaging centers and related health care facilities. Its business is focused on providing acute care treatment, including inpatient care, intensive care, cardiac care, radiology services and emergency medical treatment, as well as outpatient services. The firm also operates revenue cycle management and patient communications services businesses through its Conifer Health Solutions subsidiary. The company was founded in March 1995 and is headquartered in Dallas, TX.“
“Tenet Healthcare History
Tenet was founded in 1967 by attorneys Richard Eamer, Leonard Cohen and John Bedrosian as National Medical Enterprises (NME) and headquartered in Los Angeles,California. By 1975, NME owned, operated, and managed 23 hospitals and a home health care business.In the 1970s, NME expanded into hospital construction and bought five Florida hospitals. By 1981, NME owned or managed 193 hospitals and nursing homes, and became the third-largest healthcare company in the U.S.In the mid-1980s, NME shifted its focus to specialty hospitals. By 1990, the company had 200 hospitals in its network and was the second-largest hospital company in the U.S.
After some scandals in the early 1990s (see below), NME divested its specialty facilities. Tenet dominated the Southern California market at the time and sought a foothold inSouth Florida, Louisiana, Texas, and the Philadelphia, PA area. In 1994, NME bought American Medical Holdings for $3.35 billion, which strengthened its presence in Southern California and South Florida, and extended its reach into New Orleans, LA and Texas. Following completion of the acquisition, NME changed its name to Tenet Healthcare Corporation.In 1996, Tenet CEO Jeffrey Barbakow moved Tenet’s headquarters from Santa Monica, CA to Santa Barbara, CA. In 1998, Tenet purchased eight Philadelphia hospitals owned by the bankrupt Allegheny Health, Education & Research Foundation for $345 million.
In 2002, one of Tenet’s hospitals came under scrutiny for its surgical practices and another was investigated in a kickback scheme (see below). Federal investigations into the company’s billing practices, particularly those related to Medicare, began late in 2002, leading to a decline in Tenet’s stock price of about 70%. In 2003, Trevor Fetter became CEO of Tenet and started Commitment to Quality, an initiative to improve the “quality, safety, service and outcomes of the care and services” provided by Tenet. To rebuild its ethics and compliance programs, Tenet hired a chief compliance officer who reports directly to the company’s board of directors.
In 2003, Tenet sold or closed 14 hospitals and closed more than 20 facilities in 2004 to achieve its financial performance goals. Also in 2004, Tenet also moved its headquarters from Santa Barbara, CA to Dallas, TX. In 2006, Tenet agreed to pay $725 million to the Justice Dept. to settle allegations of unusually high Medicare payments to Tenet hospitals in 2000 to 2002. Tenet also entered into a 5-year corporate integrity agreement with the U.S. Department of Health & Human Services that required the company to provide detailed financial reports on its patient mix, collection rates and accounts receivables.In 2007, Tenet appointed former Florida governor Jeb Bush to its board of directors to improve its reputation.
In 2008, Tenet launched Conifer Health Solutions, a healthcare services company. Conifer currently serves nearly 300 hospitals throughout the U.S. and processes $25 billion in net revenue annually.
In early 2009, the price of Tenet stock briefly dipped below $4 per share after cresting above $200 per share in 2002. By the end of 2009, the company rebounded to become theS&P 500’s number 2 performer, with an operating revenue and net profit of $9 billion and $181 million, respectively. Through the end of 2013, Tenet’s stock price increased 816 percent, from $4.60 to $42.12, over the previous five years.
In May 2011, Tenet’s board rejected a $7.3 billion takeover bid from Community Health Systems, Inc. The deal would have created the largest hospital company in the U.S.
In April 2012, Tenet agreed to pay $42.75 million to resolve allegations that it improperly billed Medicare between 2005 and 2007. An internal investigation by Tenet revealed Medicare billing irregularities, and the company reported itself to the U.S. government. In May 2012, Tenet sold Diagnostic Imaging Services, Inc., its former diagnostic imaging center business in Louisiana. In August 2012, Tenet sold its Creighton University Medical Center in Nebraska.
In 2013, Tenet acquired Vanguard Health Systems, based in Nashville, TN, in a deal worth $4.3 billion. Through its acquisition of Vanguard, Tenet acquired 28 hospitals and 39 outpatient centers that serve communities in Arizona, California, Illinois, Massachusetts, Michigan and Texas. The acquisition created the third-largest for-profit hospital chain in the U.S. in terms of revenue and the third-largest in number of hospitals owned.
In May 2014, Tenet launched MedPost, a national network of urgent care centers. In June 2014, Tenet acquired a majority interest in Texas Regional Medical Center, a 70-bed community hospital in Sunnyvale, TX, east of downtown Dallas.
In June 2014, Tenet opened Resolute Health Hospital in New Braunfels, Texas. The 128-bed hospital is located on a 56-acre “wellness” campus near San Antonio, TX, and is Tenet’s 79th hospital and 19th in Texas. Tenet acquired Emanuel Medical Center in Turlock, California on August 1, 2014, bringing the number of Tenet’s hospitals to 80 nationwide.”
*Information from Forbes.com and Wikipedia.org
**Video published on YouTube by “ Audiopedia“