A change of name:- Following the guilty plea involving over half of its hospitals in the USA in 1994, the forced divestiture of its major speciality arm, a fine of US $379 million and the imposition of restrictions National Medical Enterprises changed its name to Tenet Healthcare claiming that this reflected its new ethical image and its desire to enter into partnerships with health professionals based on shared values.

The company restructures and starts growing again:- Australia now imposed restrictions and it sold its international hospitals. Past international staff including Focht, Ford and Brown were all promoted in the USA claiming that they were far removed from the fraud. The banks and the financial community were impressed with Tenet/NME's skill in negotiating a settlement which did not put it out of business. The banks mounted a massive rescue package, its shares rose again and it immediately purchased American Medical International (AMI). This moved it from the third largest US hospital owner prior to the guilty plea to the second largest after the guilty plea. It continued to pursue an aggressive program of expansion buying up other hospital groups and not for profit hospitals. Early in 1997 it absorbed OrNda Healthcare the third largest operator. Columbia/HCA indicates that it plans to sell off large numbers of hospitals. Tenet may soon be the largest operator in the USA.

The Yeldham Decision:- The Independent Commission Against Corruption (ICAC) in NSW was asked to open an investigation in order to determine whether any inappropriate influence had been brought to bear on Yeldham when he granted a licence to Australian Medical Enterprises in 1993. This request was refused.

The latest reports about Tenet/NME (1998):- During 1997 newspapers reported that Canada was taking legal action in regard to the payment of bounty for patient referrals from that country. The press also reported a $US 100 million settlement with patients who were misused in its hospitals. Interviews with these patients describe the way in which they were treated confirming the evidence of doctors who had blown the whistle.

Vista Healthcare:- In October 1996 a new company called Vista Healthcare was formed in Singapore. Its financial backer was the Chase Manhattan bank. Michael Ford, the past president of Tenet/NME's international division resigned from Tenet/NME soon after and joined Vista. Five of Vista's seven directors previously worked in Tenet/NME's international division and five are US citizens. They are now acting as international health care consultants. Michael Ford was contracted as an international consultant by Tenet/NME late in 1997 when it once again embarked on a program of international expansion targeting Singapore, South Africa and Europe.

The links between all these corporations:- Several senior Vista Healthcare directors operated in Australia and have extensive past experience in dealing with our authorities. The submissions made in regard to Tenet/NME were considered to be "less than frank". It is therefore very likely that they will be advising corporations planning to enter Australia. They may have advised Sun and Alpha Healthcare. NME had an agreement with Parkway Holdings to manage its newly acquired hospitals. Parkway Holdings shares directors with Alpha Healthcare. Patterns of relationships were therefore already established.

CLICK HERE -- for more about Vista Healthcare

Update June 2002

Patient care issues:- Information has come to hand suggesting that Tenet/NME is up to its old tricks. It is facing strikes by the nurses "over staffing levels and "other conditions that jeopardize patient care." It seems it is denying nurses input into decisions about staffing and patient care.

More Fraud settlements:-Tenet has once again agreed to large fraud settlements. These included claims it "defrauded Medicare by filing fraudulent cost reports through its home health agency", " cost-reporting fraud allegations" and "clinical laboratory unbundling fraud at 139 current and former Tenet facilities". While these have occurred primarily in hospitals acquired from AMI in 1994 and from OrNda in 1997 and may have been inherited it seems that nothing was done to stop the practices. Once again they were exposed by a whistle blower.

Tenet Healthcare Corp., Santa Barbara, Calif., announced Tuesday it would pay $55.75 million to resolve civil charges relating to national clinical laboratory billing violations and fraud at two of its hospitals, although the company denied any wrongdoing.

The settlement announcement makes Tenet the third national for-profit chain to settle healthcare fraud allegations in the past two years.
Tenet settles fraud charges for $56 million, Modern Healthcare 19 June 2002

After its previous fraud settlement and criminal pleas Tenet boasted of its high ethical standards, its ethics committees and its quality assurance. In contrast the US Securities and Exchange Commission" went to court to secure injunctions claiming that unless the company was restrained it would offend again. I have maintained that the company's business practices, its patterns of thought, and its culture did not changed. It would be more careful but was very likely to offend again.

Web site:- ??? runs a web site opposing the administraton of ECT to psychiatris patients without consent. She has had a run in with Tenet and been threatened with libel suit. She continues to track the company. She has made a list of the large numbers of court actions faced by the company.

Enter the site at <http://www.ect.org> and do a search for "Tenet", look at a chronology of the company at http://www.ect.org/tenet/index.html , or go to the lawsuits at http://www.ect.org/tenet/suits.html

Modified 31 March 1998 J.M. Wynne - M.Wynne@mailbox.uq.edu.au
Additional information added June 2002

http://www.uow.edu.au/arts/sts/bmartin/dissent/documents/health/