Tenet Execs Vow to Carry Out Overhaul
Tenet Healthcare Corp.'s executives promised major Wall Street investors that the Santa Barbara hospital chain would carry out its proposed overhaul to cut costs and improve profit margins.
At a Boston health-care conference, Tenet’s top brass reviewed plans to cut costs by $100 million and to sell or close 14 hospitals.
“Their No. 1 objective here is to rebuild credibility,” said Clifford Hewitt, health-care analyst with Legg Mason Wood Walker.
Tenet is facing various government probes, including one into the firm’s unusually high Medicare reimbursements and another into unnecessary surgeries. Tenet also may have to hire more nurses to comply with a law next year that would limit nurse-to-patient ratios in California.
Tenet’s shares dropped 45 cents to $17.55 on the NYSE.