Tenet Healthcare

Tenet Healthcare Corp. allegedly defrauded Medicare, including manipulating the Medicare outlier system, up-coding Diagnosis Related Groupings (DRGs) and paying kickbacks to physicians. The Dallas based healthcare company, which owns 68 hospitals, has agreed to pay more than $700 million under a global settlement with the Justice Department. Tenet will pay $450 million in cash immediately and an additional $275 million over three years beginning in November 2007. The remaining $175 million of the settlement will come from Medicare payments that Tenet has agreed not to collect. (Jun-28-06) [MODERN HEALTHCARE]

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