A day after Tenet Healthcare announced a settlement in its federal kickback case, a spokesman for the company said it is already looking for potential buyers for Alvarado Medical Center in San Diego. Wall Street was ready to welcome Tenet back into the fold with the company's shares among the hottest on the market yesterday, rising more than 8 percent, to $8.03, before cooling today.
Critics, however, are not quite as enthusiastic about the company's prospects. The Street interviewed CRT Capital analyst Sheryl Skolnick, who raised questions about the company's future. After the Alvarado sale, Skolnick notes, the company will be left with 68 hospitals, including five in New Orleans that it "desperately" wants to get rid of and five in Philadelphia area that also look likely to go on the block.
- read this article [1] from TheStreet.com
PLUS: Was the Tenet settlement a victory for prosecutors? Or for the defense? U.S. attorney Carol Lam argues that the wording of the settlement, in which Tenet admitted that relocation bonuses were used for improper purposes without technically admitting wrongdoing, was a victory for the company's customers. Article [2]
Links:
[1] http://www.thestreet.com/_googlen/stocks/healthcare/10286281.html?cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA
[2] http://www.signonsandiego.com/news/metro/20060518-9999-1n18lam.html