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Tenet Wants to Maximize Profits at the Expense of Good Care

by Andrew H. Selesnick
IEPC Monthly Newsletter
March 2015

Andrew Selesnick's article, "Tenet Wants to Maximize Profits at the Expense of Good Care," was published in the March 2015 issue of the IEPC Newsletter.

From the article...

" Tenet Healthcare Corporation (“Tenet”), the nation’s third largest for-profit hospital network, with 49 hospitals, announced plans last year to terminate existing contracts with emergency medicine, anesthesiology, and hospitalist groups at 11 California hospitals in an attempt to maximize profits. Professionals hired at the discretion of one national staffing firm would replace these services. Tenet, who pays millions of dollars a year in subsidies to their hospital based physicians, solicited bids so that the one firm would provide all of the emergency, hospitalist, and anesthesia services at all of their sites. In forming a single group, Tenet’s goal would be to do away with the millions of annual subsidies it provides to hospitals, leaving hospital physician groups to cross-subsidize, whereby profitable services would make up for the losses accrued by less profitable ones.

In an effort to oppose Tenet’s plan, concerned physicians including the California Chapter of the American College of Emergency Physicians and the American Academy of Emergency Medicine joined the Coalition for Quality Hospital Care. The coalition launched an aggressive media campaign to persuade Tenet that terminating all of its contracts with the local groups was bad for patient care. At a meeting with Tenet leadership, Tenet maintained that coordination of care – and not profits – was the driver behind the proposal."