Tenet Healthcare Fraud

Tenet is a multinational healthcare provider based in Dallas Texas.

The facts of the case are:

  • Four Tenet hospitals are known to have paid kickbacks to Hispanic clinics in return for referrals of pregnant, undocumented women to Tenet hospitals.
  • The US Justice Department opened an investigation of Tenet in 2012.  The investigation was disclosed publicly in 2015.  Criminal charges have been filed against persons involved in the fraud.
  • Tenet agreed to pay $514 million to the government to settle the lawsuits plus an additional $3 million for “related fees and expenses.”
  • There is now a new class action suit alleging that Tenet failed to disclose the criminal claims and liabilities to investors.

Why does this matter to me?  I’m not an investor.

The Italian saying, “fish rot from the head”, applies to corporations.  There are occasional loose torpedoes within corporate ranks, but usually the presence of wrong-doing is directly or indirectly attributable to management.  When a company has broken faith multiple times, why do you trust them with your health?

According to one financial analyst, the settlement with the government is ““just another in a long track record of troublingly persistent problems with fraud and patient care which have triggered massively expensive penalties–but no convincing remedy.”(1)

In the NJ/Philadelphia area, Tenet owns upwards of 15 facilities, many of which operate primarily under other brand names.  Most are ambulatory surgery centers, but Hahnemann Hospital in Philadelphia is on the list.  With whom are you really dealing?

Due diligence is essential for patients and their families.


  1. Bennett, Johanna, “Tenet Healthcare: “Persistent Problems With Fraud,” Says Gimme Credit,” Barron’s, 5 October 2016.  http://blogs.barrons.com/incomeinvesting/2016/10/05/tenet-healthcare-pesistant-problems-with-fraud-says-gimme-credit/
  2. Ellison, Aula, “Investor sues Tenet after $514M kickback deal: 7 things to know,” Becker’s Hospital Review, 11 October 2016.  http://www.beckershospitalreview.com/legal-regulatory-issues/investor-sues-tenet-after-514m-kickback-deal-8-things-to-know.html
  3. Sanborn, Beth, “Tenet Healthcare to pay $513 million over referral, kickback scheme, DOJ says,” Healthcare Finance, 3 October 2016.  http://www.healthcarefinancenews.com/news/tenet-healthcare-pay-513-million-over-referral-kickback-scheme-doj-says
  4. https://www.tenethealth.com/for-patients-main/our-network#/#top


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