Tenet stock plummets 22%

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Monday, June 23, 2003 | 11:20 a.m.

SANTA BARBARA, Calif. -- Shares in Tenet Healthcare Corp. plummeted today after the hospital operator projected unexpectedly weak earnings for its second, third and fourth quarters.

Tenet has been scrutinized for questions surrounding its pricing strategies. Its Medicare billing is being investigated by federal authorities.

The company said it is facing higher costs and getting lower payments from the U.S. government and managed-care companies.

Shares of Santa Barbara, Calif.-based Tenet fell hard on the outlook news. They were at $12.70 in early trading, down $3.53, or 22 percent. In North Las Vegas, Tenet owns Lake Mead Hospital.