Tenet Healthcare said that it has reached an agreement with federal officials to settle charges that it used kickback payments to doctors to encourage them to refer patients. The hospital chain will pay a fine of $21 million. The Dallas-based provider has also agreed to either sell or shut down Alvarado Medical Center. Federal prosecutors had charged that the hospital improperly used payments to physician groups as an incentive to encourage them to refer patients. Tenet shares rallied up five per cent on the news, as Wall Street bet the company is now in a position to leave its troubles behind.
- see this article from The Wall Street Journal