Tenet Healthcare Corp. Chairman and CEO Jeffrey Barbakow will step aside as chairman later this year as part of an overhaul of the company's board. An independent board member will be chosen as the next chairman, according to Tenet, Santa Barbara, Calif. The move is the latest in a series of announcements by Tenet's revamped management team, which hopes to stem the loss of investor confidence in the company brought on by revelations in October 2002 that its earnings relied heavily on unusually high Medicare outlier payments. A series of government probes involving Tenet or physicians who practice at its hospitals has followed. The company also said its three longest-serving outside directors won't stand for re-election, giving Tenet 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 plans to keep 153-bed Daniel Freeman Marina Hospital, Marina del Rey, Calif., open despite winning the right to close it 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 revamps board; Barbakow to step aside as chair
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