Business
Tenet kickback trial opens
NEWS IN BRIEF — Posted Nov. 15, 2004
As a trial opened in San Diego accusing Tenet Healthcare Corp. of paying illegal kickbacks to physicians to boost patient referrals, the hospital chain reaffirmed its support of the physician recruitment practices at the center of the case.
On Oct. 26, the day opening statements in the case began, Tenet issued a written statement defending itself, saying the hospital involved had worked diligently and honestly to abide by the complex rules governing physician relocation agreements.
"Tenet believes that the physician relocation agreements entered into by Alvarado Hospital Medical Center were appropriate and legal under federal laws and regulations," the statement said.
But federal prosecutors painted a much different picture. They alleged that Alvarado and another Tenet subsidiary paid more than $10 million to fund more than 100 physician relocation agreements between 1992 and 2002 to recruit medical services to the hospital's service area. But they claimed that a "substantial portion" of the money went to established doctors to induce them to make referrals to Alvarado.
Former Alvarado Chief Executive Barry Weinbaum and former Associate Administrator Mina Nazaryan also have been indicted for their alleged roles in the case.
The jury trial in U.S. District Court is expected to last two to four months.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/11/15/bibf1115.htm.
