Tenet Healthcare – formerly headquartered in Santa Barbara – agreed to pay $900 million to settle federal allegations of widespread fraud. The company was accused of boosting revenues by prescribing unnecessary and expensive surgeries on unsuspecting Medicare recipients. Tenet spokespeople admitted no legal wrongdoing, but conceded the company made “mistakes.” The settlement brings to a close the federal fraud case against Tenet – the second-largest healthcare chain in the nation – but Securities and Exchange Commission and IRS inquests remain ongoing.
TENET FRAUD CASE SETTLED:
Originally published 12:00 p.m., July 6, 2006
Updated 2:54 p.m., July 27, 2006
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