Tenet gets $340M for Katrina damages

Tenet's insurers have paid the hospital system $340 million for damages resulting from Hurricane Katrina. Tenet said that five hospitals, five outpatient radiology centers and other properties suffered substantial damage during the storm and two hospitals have yet to reopen.

By settling with the insurer, Tenet has avoided a legal battle that could have dragged on for years. "Instead of engaging in a protracted resolution process with our insurers, we sat down with them and worked out a collaborative and equitable settlement that permits us to move forward after the devastation of Katrina," said CEO Trevor Fetter. "[T]his also gives us the flexibility to apply these funds to meet the company's overall capital needs." Perhaps he is referring to Tenet's $900 million settlement with the Department of Justice. Only $560 million to go...

- see the press release for more