March 18, 2003
Posted at: 3:51 p.m. CST
JONESBORO, Ark. -- Tenet Healthcare Corporation, the nation's second-largest hospital chain, will sell or consolidate 14 hospitals in eight states.
In Arkansas, Tenet plans to sell its four hospitals: Central Arkansas Hospital in Searcy, Regional Medical Center in Jonesboro, National Park Medical Center in Hot Springs, and Saint Mary's Regional Medical Center in Russellville
The company wants to cut costs by $100 million and use the proceeds to buy back shares. Tenet's stock has fallen since October when questions were raised over the company's reliance on supplementary Medicare payments to boost revenue.
The company is the subject of a federal audit over the payments. The U.S. Justice Department is also suing Tenet for allegedly overbilling Medicare to inflate revenues.