Over the years, the healthcare industry has undergone through an exponential growth despite the tremendous market pressure. Tenet Healthcare Corporation is among the many organizations that the struggle for a position in the healthcare industry (Klaidman, 2010). However, this struggle has contributed to a series of legal and ethical scandals that have largely changed the reputation of the company. Based on theoretical and practical explanations, this paper seeks to critically analyze one of the most recent scandal involving doctors at Tenet Healthcare who carried out unnecessary heart surgeries on patients. An Overview of the Company
This company was established in 1967 under the name National Medical Enterprises by three lawyers and headquartered in Los Angeles, California. In its early years, the business policy of the company was mainly focused on building and acquiring medical facilities and related services in order to address the growing medical demands in the new market. In the late 1980s, the company diversified into specialty hospitals such as building nursing homes, and rehabilitation centers among other developments (Klaidman, 2010). Tenet Healthcare before the scandal
Following a series of fraud and legal troubles, the company changed its name to Tenet Healthcare Corporation in 1994 whose headquarters is based in Dallas. Tenet Healthcare operates a number of hospitals and other healthcare facilities that are mandated to provide health care services to its customers. It is essential to mention the services provided by Tenet Healthcare are conducted through its subsidiaries (Klaidman, 2010). Tenet Healthcare Corporation owns and operates 69 acute-care hospitals, which provides services to urban communities in 13 states, in the United States. Some of the services provided by the company include acute care, respiratory therapy services, clinical laboratories, operating and recovery rooms, pharmacies and intensive care (California Nurse, 2002). The involvement of the company in recent legal and financial troubles has contributed to the falling of shares of Tenet Healthcare, from over $50 a share in 1994, to $8 a share today. The involvement of the company in a number of scandals contributed to the reduced profits in the 1990s. Nevertheless, a number of changes in the management of the company following the appointment of Jeffry Barbakow as the chief executive in 1993 contributed to the recovery of the company (Klaidman, 2010). For six years, Tenet Healthcare Corporation tried to consolidate its position in the healthcare industry by buying hospitals around the country. This move contributed to the strong recovery that saw tenet healthcare redeeming itself from a $425million loss in 1994 to a $302 million profit in 2000 (Taylor, 2005). The Unnecessary Cardiac Procedures Scandal
Individuals or firms who knew about, participated in or condoned the behavior. Several individuals were linked to the scandal and specifically the physicians who were recruiting patients by paying them. This means that most of the employees and especially physicians knew about the scam. Moreover, Tenet had been performing poorly in terms of finances, and this has been noted to be one of the reasons that prompted the corporation to enter into corrupt deals. During the past decade, Tenet Health Care Corporation has faced scandals pertaining to legal and financial matters. Its image had been tarnished, and thus a number of its customers were compelled to seek medical services elsewhere. Moreover, it had influenced the number of uninsured citizens and reduced employer insurance cover. This gave rise to an excess number of individuals who were unable to cater for their medical services and hence resulted in a significant drop in Tenet’s market. The scandal erupted in October 2002 following allegations from hundreds of patients who believed that many of the heart operations done to patients at the Redding Hospital, in...
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