Jeffrey Barbakow will step aside as chairman of Tenet Healthcare Corp., Santa Barbara, Calif., later this year as part of a board overhaul but will remain company CEO. An independent board member -- someone not employed by Tenet currently or within the past five years -- will be chosen as the next chairman, the company said. The move is the latest in a series of announcements by Tenet's revamped management team, which hopes to revitalize investor confidence damaged by revelations in October 2002 that the company's earnings relied heavily on unusually high Medicare outlier payments. A series of government probes involving Tenet or physicians practicing at its hospitals has followed. Tenet also said its three longest-serving outside directors won't stand for re-election, giving the company four new board members out of the 11 total. Tenet said it will amend its articles of incorporation and bylaws to require board members to stand for election by shareholders annually. In a separate announcement, Tenet said it won't close 153-bed Daniel Freeman Marina Hospital, Marina del Rey, Calif., because community support for keeping the hospital open is so strong. The company made its decision after winning the right to close the hospital in a settlement last week with California Attorney General Bill Lockyer. Lockyer sued in July 2002 to stop Tenet from closing the hospital. -- by Vince Galloro
Tenet's Barbakow to resign as chair in board revamp
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