Union nurses at a Detroit Medical Center hospital charge that Tenet Healthcare Corp. has violated the terms of its 2013 purchase of DMC. They say charity care has dropped 98% since 2013 at four DMC hospitals.
Tenet Healthcare Corp. shareholders now only need to own 25% of the company's shares in order to request special meetings, the hospital chain announced Monday. That's down from more than 50% under previous rules.
Dallas-based Tenet Healthcare Corp. has completed a series of previously announced hospital divestitures that brought in more than $550 million altogether in the first quarter of 2018.
The U.S. attorney's office in Detroit is investigating possible federal civil violations of anti-kickback, false-claims and self-referral laws at Detroit Medical Center, according to a federal securities filing by Tenet Healthcare Corp., DMC's parent company.
Tenet Healthcare Corp.'s net loss from continuing operations widened to $230 million in the fourth quarter of 2017 from a loss of $79 million a year earlier.
Activist investors are taking more interest in buying shares of healthcare companies and trying to influence management.
Activist investors took varied approaches with the three largest hospital chains.
Tenet Healthcare Corp. shareholders will vote on a proposal to allow for action by written consent without meetings. Glenview Capital Management, which owns a 17.77% stake in Tenet, submitted the proposal.
Salt Lake City-based Intermountain Healthcare will outsource 2,300 nonclinical employees to revenue-cycle management company R1 RCM, a move that is expected to save the integrated health system $70 million over the next three years.
The most mergers ever were recorded in 2017 by financial firm Kaufman Hall, which began tracking deals in 2000. Even with that growth, more financially strong systems are attracting interest in being acquired by a larger or better-positioned system.
Loyola Medicine plans to pay about $270 million to buy west suburban MacNeal Hospital from its giant for-profit owner Tenet Healthcare, which is exiting the Chicago-area market.
Majority stakeholders in Tenet Healthcare Corp. can now convene meetings where they could potentially vote on significant changes to the company, including a sale.