Friday, June 13, 2003 | 11:12 a.m.
SANTA BARBARA, Calif. -- Tenet Healthcare Corp., the U.S. hospital chain whose Medicare charges are under investigation, today said it will cut 300 jobs and spend $275 million over three years to streamline billing and collections.
The company, owner of Lake Mead Hospital in North Las Vegas, said it will slash the number of business offices it operates to eight from 56. Tenet expects to save $75 million annually, starting six months after the consolidation is completed, it said.
Tenet, the No. 2 U.S. hospital operator, is trying to cut costs amid reduced payments from Medicare, the government health program for the elderly. Former Chief Executive Jeffrey Barbakow quit last month after disclosing that Tenet had boosted profit with special payments Medicare makes for the sickest patients.
Consolidating the Santa Barbara, Calif.-based company's billing operations will help in "streamlining the organization, increasing efficiency and reducing costs," Chief Financial Officer Stephen Farber said in the statement.
archive
