Tenet Healthcare Corp., Dallas, said that it has been notified by the Securities and Exchange Commission that SEC investigators expect to recommend that the agency bring a civil enforcement action against the company, former Chief Executive Officer Jeffrey Barbakow and five other former executives. The SEC has been investigating the adequacy of Tenet's financial disclosures regarding its Medicare outlier payments and managed-care stop-loss reimbursements for at least two years. Tenet disclosed the investigation in April 2003 and said it continues to cooperate with the probe.
Tenet, Barbakow and the other executives each received what the SEC calls a "Wells notice." The recipients all have the opportunity to respond to the investigators before the final recommendation is made, Tenet said. Besides Barbakow, the other former executives are Chief Financial Officer David Dennis, Chief Operating Officer Thomas Mackey, General Counsel Christi Sulzbach, Chief Accounting Officer Raymond Mathiasen and Steven Dominguez, senior vice president of government programs. Mathiasen was also a senior vice president. -- by Vince Galloro