Under fire for its high proportion of Medicare outlier payments, Tenet Healthcare Corp. announced it has replaced two senior members of its management team. Thomas Mackey, 54, a 17-year employee of the Santa Barbara, Calif.-based company and its COO since 1999, has retired, while David Dennis, 53, who has served as chief corporate officer and CFO since 2000, has resigned. Both Mackey and Dennis will be available to consult with Tenet, the company said in a news release. Trevor Fetter is returning to Tenet as president, a new position. Fetter, 42, has been chairman and CEO of Broadlane, San Francisco, a cost-management services provider spun off from Tenet in 1999. He has resigned as Broadlane's CEO but remains chairman. Stephen Farber, 33, was promoted to CFO of Tenet from his position as treasurer and senior vice president. Fetter and Farber will report directly to Chairman and CEO Jeffrey Barbakow.
In the news release, Barbakow said the company is reconsidering its aggressive pricing strategy because of the strategy's effects in certain markets and on the outlier payments. "While our pricing approach was entirely consistent with the Medicare regulations, it put us on a course that was inconsistent with the position and posture we want Tenet to have within our industry," Barbakow said. -- by Vince Galloro