Tenet affiliate gets 2nd subpoena
N.O. operation is subject of probe by U.S. attorney
The Times Picayune
Thursday October 16, 2003By Keith Darcé
Business writerAn affiliate of Tenet Healthcare Corp., one of the largest hospital operators in metropolitan New Orleans, has received a second subpoena in connection with a criminal probe by the U.S. attorney's office in New Orleans, Tenet said this week.
The subpoena was received Friday by People's Health Network, a 50/50 joint venture between Tenet and several local physician groups. People's provides billing, claims processing and other management for Tenet's local health maintenance organization, Tenet Choices Inc.
Tenet disclosed Oct. 6 that the joint venture, based in Kenner, had received an initial subpoena from the U.S. attorney.
The latest subpoena seeks "patient information for Tenet Choices members who were admitted to an inpatient rehabilitation unit and members for whom inpatient rehabilitation services were ordered, recommended or requested and subsequently denied," according to a filing by Tenet with the Securities and Exchange Commission disclosing the records request.
The first subpoena sought a wide range of records from People's, including articles of incorporation and bylaws, membership data, meeting agendas and minutes, policy manuals and documents related to the New Orleans area independent physician associations that are part owners of People's.
Both subpoenas requested records starting from Jan. 1, 1999, to the present.
Tenet said the U.S. attorney's office is conducting a "criminal inquiry" into its New Orleans operations.
The company, based in Santa Barbara, Calif., owns and operates 112 hospitals in 16 states, including seven in metropolitan New Orleans: Kenner Regional Medical Center in Kenner, Doctors Hospital of Jefferson in Metairie, Meadowcrest Hospital in Gretna, Memorial Medical Center in New Orleans, NorthShore Psychiatric Hospital in Slidell, NorthShore Regional Medical Center in Slidell and St. Charles General Hospital in New Orleans.
Tenet Choices was created in 1996 to provide insurance coverage for people treated by Tenet's local hospitals and eight physician groups that make referrals to the hospitals.
Tenet has faced criminal probes and lawsuits in several other states alleging fraud, overbilling, providing unnecessary services, falsifying medical records, providing poor service, patient abuse and other complaints.