Tenet to build new hospital, repair others in Gulf Coast region

Tenet Healthcare announced plans to invest "hundreds of millions of dollars" to rebuild damaged facilities in New Orleans and reinvigorate its business in the area by funding the construction of a new hospital. The company is not revealing exact figures on how much it plans to spend, but The Wall Street Journal is guessing that its investment on the new facility is likely to be in the $250 million to $300 million range. Tenet, which is the second-largest private hospital chain in the nation in terms of revenue, suffered serious damage to five hospitals in the New Orleans area. The question of the company's liability remains a major issue for some analysts.

Lurking in the background for the company is the investigation by Louisiana Attorney General Charles Foti into possible mercy killings at Memorial. The company continues to strenuously deny the charges, which stem from reports by at least one doctor and a nurse manager. "They're investigating heroes," said a spokesman.

- see this article from The Wall Street Journal (sub. req.)

PLUS: "Eyebrows were raised" last week when Tenet CFO Robert Shapard announced his departure, and the stock fell 5 percent on Friday and a further 3 percent by noon today. But some analysts are buying in on his explanation that prospects in the energy sector look brighter. Article

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