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Guilty plea in Tenet hospital case

NEWS IN BRIEF — Posted Jan. 24, 2005

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The former administrator of a Tenet Healthcare Corp. hospital in San Diego has agreed to plead guilty to a charge of conspiracy in the federal government's ongoing investigation of whether the hospital paid illegal kickbacks to physicians to boost patient referrals.

Tenet announced on Jan. 5 that Mina Nazaryan, former assistant administrator at Alvarado Hospital Medical Center, had entered into the plea agreement. The U.S. Attorney's office in San Diego declined to comment on the deal, citing the ongoing trial of the other defendants in the case, including the hospital, a Tenet subsidiary and former Alvarado chief Barry Weinbaum.

Tenet did not say what penalties Nazaryan could face or whether she was expected to testify against the other defendants.

Prosecutors have 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.

Tenet has denied wrongdoing, saying it stands by its physician recruitment practices.

In a statement about Nazaryan, the company said, "Nazaryan's plea is hers alone. It will not affect our decision to vigorously defend the hospital and its chief executive officer."

In another matter, Tenet said it had agreed to pay $31 million to settle 106 lawsuits filed against its Palm Beach Gardens Medical Center in Florida. The plaintiffs alleged they contracted postoperative infections after having cardiac surgeries at the facility.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2005/01/24/bibf0124.htm.

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