The University of Southern California has sued Tenet Healthcare to end the hospital chain's contract with the 329-bed USC hospital system. If the suit is successful, it would bring an end to USC and Tenet's 20 year partnership. USC claims that Tenet's constant legal troubles have damaged its reputation and negatively effected Tenet's ability to operate the medical center. In June, Tenet was ordered to pay $725 million to resolve outstanding charges that it improperly billed Medicare and violated other federal rules governing hospitals. A spokesperson for USC said that the two sides had been in talks last week to renegotiate their contract but that "the university ended up with more than $100 million less than it sought for capital improvements." A Tenet spokesperson countered the statement, claiming that the suit is simply a tactic designed to give USC an upper hand in the negotiations.
For more on the USC/Tenet battle:
- read this article from The New York Times.