Tenet Healthcare Corp., Dallas, will delay its second-quarter report to the Securities and Exchange Commission to investigate an accounting issue stemming from an SEC review of Tenet's disclosures to investors prior to 2003. Tenet said a former employee alleged that three Tenet hospitals in California recorded improper contractual allowances for managed-care contracts through at least fiscal 2001. Tenet said its independent outside counsel is investigating the allegations and whether other Tenet hospitals may have followed similar practices. If some allowances are found to be improper, some past operating revenue figures would be affected. But the company said it does not expect material changes to its current financial status or 2004 and 2005 results. The outside counsel's investigation won't be completed in time for Tenet's outside auditor, KPMG, to sign off on the company's quarterly securities filing. Tenet said it would continue to report some second-quarter financial results on Aug. 2. -- by Vince Galloro
Tenet says accounting issues will delay SEC filing
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.