New York Times Examines Investigation Into Tenet Healthcare’s Redding Medical Center
The New York Times on Aug. 12 profiles allegedly unnecessary cardiac procedures performed by two physicians at Redding Medical Center, which is owned by California-based Tenet Healthcare, the second-largest for-profit hospital system in the nation (Eichenwald, New York Times, 8/12). Tenet officials on Aug. 6 agreed to pay $54 million to settle allegations that Dr. Chae Hyun Moon, former chief cardiologist, and Dr. Fidel Realyvasquez, a cardiac surgeon, performed unnecessary heart surgeries and defrauded Medicare. Under the settlement, Tenet did not admit any wrongdoing, but agreed to implement new procedures at Redding. The settlement ends civil and criminal investigations into Tenet, subsidiary Tenet HealthSystems Hospitals and Redding. However, federal investigations into the involvement of individuals in the alleged Medicare fraud at Redding will continue; Tenet officials agreed to cooperate with the investigations (Kaiser Daily Health Policy Report, 8/7). Moon and Realyvasquez face criminal investigations, although no charges have been filed against them. Both doctors have been suspended at Tenet, and Moon has given up his medical license until the investigations are resolved. Attorneys for both doctors said the physicians have done nothing illegal. The Times traces Redding's finances and Medicare billing practices. According to the Times, "financial pressures created a disincentive" for Tenet officials to look into concerns raised by at least six employees that "invasive procedures" were being performed to increase profits (New York Times, 8/12). In separate cases, Tenet faces investigations into a variety of allegations by the Florida Medicaid Fraud Control Unit and the U.S. Attorney's office in Los Angeles. The Securities and Exchange Commission, the HHS Office of Inspector General and the Federal Trade Commission also have launched investigations into Tenet since October 2002; the company also faces shareholder lawsuits (Kaiser Daily Health Policy Report, 8/11).
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