Tenet must restate earnings

Following an internal audit, the Dallas-based healthcare provider Tenet said on Thursday that it must restate earnings from 2000 to 2004. Investors were not deterred by the news, however. The company's shares are up again slightly this morning, as traders appear to be guessing that the news means that the company will finally be able to put its troubles behind it. Some analysts, including critics in a dissident shareholder group, had predicted that the audit would uncover far more serious problems. Analysts note that the company still faces significant problems, including an ongoing investigation into its Medicare billing practices and a second trial in San Diego over alleged kickbacks paid to physicians at Alvarado Medical Center. Some expect the chain to continue its strategy of selling struggling hospitals.

- see this article from TheStreet.com

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