Union Seeks CalPERS Review of Tenet

A labor union that has been locked in contentious organizing efforts with hospital chain Tenet Healthcare Corp. succeeded Tuesday in getting time to air its concerns about the company at the next meeting of the California Public Employees’ Retirement System in December.

The Service Employees International Union asked the giant retirement system to review health-care practices and costs at the nation’s No. 2 hospital chain.

CalPERS, as the nation’s second-largest purchaser of health insurance, wields considerable influence in the state’s health-care market. The pension fund recently outlined a strategy to try to cut health-care costs by focusing on hospitals and physician groups.

Tenet, based in Santa Barbara, is the subject of a federal audit of its huge revenue derived from a particular form of Medicare reimbursements.

And last month, the FBI raided a Tenet hospital in Redding, where two doctors are being investigated for allegedly performing unnecessary heart operations.

In addition, Tenet’s current troubles may keep it from pursuing its acquisition strategy. A hospital in Slidell, La., signed a deal last month to be sold to Tenet.

Tenet was sending representatives for a meeting today with the board of directors of Slidell Memorial Hospital, whose members have expressed concerns about recent news involving Tenet.