Tenet Healthcare Corp., Dallas, said it will restate financial results for 2000 through 2004 because of errors in accounting for managed-care contracts. Tenet said the restatements would change profit or losses in specific years by 3% to 9%. The cumulative effect appeared to be nearly a wash except for an income tax charge of $47 million for 2004. Tenet said the restatement followed a request by the Securities and Exchange Commission to investigate allegations by a former employee about improper allowances on managed-care contracts at three hospitals in California. Tenet said some reserves that had been recorded will be reversed and some revenue and expenses will be recognized sooner than originally reported. President and Chief Executive Officer Trevor Fetter said the for-profit hospital chain was continuing to fix "the legacy of mistakes made by this company in the past." Last week, Tenet announced it would pay $215 million to settle federal class-action litigation stemming from charges that it misled investors about Medicare payments. It previously settled charges over unnecessary heart bypass surgeries, and several executives quit under fire. Read Tenet's news release. -- by the Associated Press
Tenet to restate results for five years; effect minor
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