Tenet Healthcare to sell 11 hospitals; four in New Orleans - Tenet agreed to pay a settlement of $725 million for federal investigations of the Dallas-based hospital chain over allegations that the hospital overbilled Medicare patients

[Guest guest]

Tenet Healthcare to sell 11 hospitals; four in New Orleans 12:53 PM CDT on Thursday, June 29, 2006 WWLTV.com Tenet officials announced Thursday plans to sell 11 hospitals, including four in New Orleans, by the middle of 2007. WWL-TV Kenner Regional Medical Center holds more than 200

beds. The hospitals that will be affected include: Kenner Regional Medical Center, Lindy Boggs Medical Center (Baptist), Meadowcrest Hospital and Memorial Medical Center (Baptist). The sale will eliminate more than 900 beds for patients. Officials said the decision was made due to uncertainties in the city and the need to consolidate healthcare in the aftermath of Katrina. Tenet had already divested the Gulf Coast Medical Center in Biloxi before the announcement. The announcement came as Tenet agreed to pay a settlement of $725 million for federal investigations of the Dallas-based hospital chain over allegations that the hospital overbilled Medicare patients before 2003.

Tenet said the settlement would be paid over a period of four years and end all federal investigations. The hospital chain added it would its right to pursue $175 million in certain past Medicare payments. The Associated Press contributed to this report.