On Feb. 22, Tenet Healthcare reported it set aside $238 million to settle a federal kick-back investigation regarding Tenet's contracts between four of its hospitals, according to Atlanta Business Chronicle.
Here are five things to know:
1. The lawsuit alleges Tenet, its four hospitals and Health Management Associates, which operates 71 hospitals in 15 states, paid kickbacks to Georgia-based Clinical de la Mama for Medicaid patient referrals. The company operated medical clinics that provided predominantly undocumented Hispanic women prenatal care.
2. Tenet has met with the U.S. Department of Justice and the State of Georgia since January to discuss possible resolutions. The "preliminary discussions" relate to four of Tenet's hospital subsidiaries including Atlanta Medical Center; North Fulton Hospital in Roswell, Ga.; Griffin, Ga.-based Spalding Regional Medical Center; and Hilton Head (S.C.) Hospital.
3. Tenet said it would exit the Atlanta market in December and would sell its Atlanta hospitals to Wellstar Health System in a $575 million deal.
4. Tenet increased its reserve for the investigation from $20 million to $238 million to "reflect an offer it made in February 2016 to resolve the matter."
5. The reserve increase reduced Tenet's net income by nearly $184 million during the fourth quarter of 2015.
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