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Medicare

Shareholders call on Medicare to freeze outlier payments to Tenet

Published in Managed Care Weekly Digest, January 27th, 2003

M. Lee Pearce, MD, chairman of the Tenet Shareholder Committee, called on Thomas A. Scully, administrator of the Center for Medicare and Medicaid Services (CMS) to freeze Medicare "outlier" payments above prescribed levels to Tenet Healthcare and any other hospitals that may be abusing the system.

The effect of such a freeze would be to cut the high level of payments Tenet is currently receiving.

"CMS is investigating Tenet's excessive and unethical gaming of the Medicare system," Pearce said, "but payments at these high rates will continue for an unknown time until CMS completes the investigation and adopts new policies."

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