DALLAS--(BUSINESS WIRE)--Tenet Healthcare Corporation (NYSE: THC) today announced that it has
finalized its previously disclosed agreement in principle with the U.S.
government to resolve the Clinica de la Mama criminal investigation and
civil litigation, which involved referral source arrangements at three
of Tenet’s former hospitals and one current hospital. The settlement was
reached with the U.S. Department of Justice (DOJ), the U.S. Attorneys’
Offices for the Northern and Middle Districts of Georgia, and the State
Attorneys General for Georgia and South Carolina.
Trevor Fetter, chairman and chief executive officer, stated, “The
conduct in this matter was unacceptable and failed to live up to our
high expectations for integrity. The relationships between the four
hospitals and Clinica de la Mama violated the explicit requirements of
our compliance program and were inconsistent with the strong culture of
compliance we’ve worked hard to establish at Tenet. We take seriously
our responsibility to operate our business in accordance with the
highest ethical standards, every day and in every interaction.”
As part of Tenet’s commitment to strengthen safeguards and continually
improve its compliance program, the company has amended and expanded
existing policies related to referral source arrangements, including
limiting the services that the company’s facilities purchase from
referral sources. Tenet also is implementing more rigorous standards in
its vendor selection process, sharpening its audit and oversight
activities, and instituting enhanced training for employees on referral
source policy changes.
Terms of the Settlement
As previously disclosed on August 1, 2016, Tenet will make settlement
payments of approximately $514 million and pay approximately $3 million
of related fees and expenses. Tenet expects to make these payments
during the fourth quarter using available liquidity, including cash and
borrowings under the company’s revolving credit facility.
The settlement also includes the execution of a three-year
non-prosecution agreement (NPA) with the DOJ. As part of the NPA, Tenet
and the DOJ will select a compliance monitor for a period of three years
to oversee Tenet’s compliance with the Federal Anti-Kickback Statute and
Stark laws relating to referral source arrangements. In addition, two
wholly-owned subsidiaries that previously operated Atlanta Medical
Center and North Fulton Hospital in Georgia will plead guilty to a
single count of conspiracy to violate the Federal Anti-Kickback Statute
and defraud the United States. Tenet completed the divestiture of both
facilities on March 31, 2016, and the subsidiaries currently have no
operating assets.
The final resolution is subject to court acceptance of the plea
agreements. Copies of the resolution documents will be filed in a Form
8-K with the Securities and Exchange Commission.
About Tenet Healthcare
Tenet Healthcare Corporation is a diversified healthcare services
company with 130,000 employees united around a common mission: to help
people live happier, healthier lives. Through its subsidiaries,
partnerships and joint ventures, including United Surgical Partners
International, the company operates 79 general acute care hospitals, 20
short-stay surgical hospitals and over 470 outpatient centers in the
United States, as well as nine facilities in the United Kingdom. Tenet’s
Conifer Health Solutions subsidiary provides technology-enabled
performance improvement and health management solutions to hospitals,
health systems, integrated delivery networks, physician groups,
self-insured organizations and health plans. For more information,
please visit www.tenethealth.com.
The terms "THC", "Tenet Healthcare Corporation," "the company," "we,"
"us" or "our" refer to Tenet Healthcare Corporation or one or more of
its subsidiaries or affiliates as applicable.
This release contains “forward-looking statements” - that is, statements
that relate to future, not past, events. In this context,
forward-looking statements often address our expected future business
and financial performance and financial condition, and often contain
words such as “expect,” “assume,” “anticipate,” “intend,” “plan,”
“believe,” “seek,” “see,” or “will.” Forward-looking statements by their
nature address matters that are, to different degrees, uncertain.
Particular uncertainties that could cause our actual results to be
materially different than those expressed in our forward-looking
statements include, but are not limited to, the factors disclosed under
“Forward-Looking Statements” and “Risk Factors” in our Form 10-K for the
year ended December 31, 2015, and other filings with the Securities and
Exchange Commission. Among other things, these factors include adverse
regulatory developments, government investigations or litigation,
including our continued and future compliance with the terms and
provisions of the NPA and other agreements and undertakings relating to
the resolution of the Clinica de la Mama civil litigation and criminal
investigation. The failure to comply with the terms of the resolution
documents could subject us to criminal prosecution and other material
sanctions and penalties. The settlement and resolution of the Clinica de
la Mama matters is subject to court acceptance of the plea agreements.
Although the Company believes such acceptance will be obtained, there
can be no assurance that court acceptance will be received. If court
acceptance is not obtained, or if the terms of the final resolution are
materially different than the resolution to which we have agreed, the
eventual loss related to these matters could materially exceed the
amount reserved and could have a material adverse effect on our
business, financial condition, results of operations or cash flows.
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investors about the Company including the posting of important
announcements regarding financial performance and corporate developments
