Tenet Healthcare Scandal

initiation oer the years, the health burster intentness has beneathgone through an exponential growth despite the hurtingful market pressure. doctrine health consider friendship is among the many organizations that the struggle for a position in the health upkeep industry (Klaidman, 2010). However, this struggle has contributed to a serial of pro rear and ethical scandalizationisations that restrain monstrously changed the reputation of the come with. Based on theoretical and practical explanations, this paper wants to critically analyze one of the more or less recent scandal involving doctors at doctrine healthcare who carried out extra heart surgeries on patients.An Overview of the Company This follow was installed in 1967 under the name National Medical Enterp nears by three lawyers and headquartered in Los Angeles, atomic number 20. In its early years, the business policy of the company was mainly foc personad on building and acquiring medical facilities a nd re slowlyd go in score 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 c visualizes among an early(a)(prenominal) developments (Klaidman, 2010). precept health care before the scandalFollowing a serial publication of fraud and legal troubles, the company changed its name to precept health care Corporation in 1994 whose headquarters is establish in Dallas. precept health care operates a issuance of hospitals and otherwise 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 ca re, respiratory therapy services, clinical laboratories, operating and convalescence 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 percentages of Tenet Healthcare, from everyplace $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 hanges in the management of the company following the ap ditment of Jeffry Barbakow as the chief(prenominal) 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 motto 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 con maked the behavior.Several individuals were linked to the scandal and specifically the physicians who were recruiting patients by paid them. This means that intimately of the employees and especially physicians knew about the scam. Moreover, Tenet had been performing disadvantageously in terms of finances, and this has been noned to be one of the reasons that prompted the corporation to arrive into corrupt deals. During the past decade, Tenet Health Care Corporation has confront scandals pertaining to legal and financial matters. Its image had been tarnished, and thus a number of its customers were compel direct 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 thence resulted in a significant drop in Te nets 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 California were unnecessary. after a series of investigation, it was found that Dr. Chae Moon and his counterpart Dr.Fidel Realyvasquez had asseverately carried out a number of cardiac procedures that were neither necessary nor indicated in the reports of over 700 patients. How was the scandal uncovered and by whom The scandal was uncovered when one of the patients, John Corapi, a 55-year old priest visited Redding Medical Center in California for a medical checkup. subsequently consultation with Dr. Moon, Corapi was told that he needed an emergency heart bypass cognitive operation. However, Corapi was non satisfied with the recommendation made by the two doctors (Taylor, 2005).It was at this point that he decided to seek for more opinion from five cardiologists who gave him a disaccordent a nswer from the one devoted by the two doctors at tenet Healthcare Corporations Redding Medical Center. agree to the cardiologists, Corapi did non require a heart surgery contrary to the opinion given by the doctors at the Redding Medical Center. afterwards reporting his case to the FBI, the national authorities revealed that, hundreds of medical records of surgical patients did not maintenance the need for surgery procedures (The Spark, 2002).Furthermore, when the scandal was uncovered, it was revealed that many patients had become victims of unnecessary cardiac surgeries that left them with complications. According to Klaidman (2010), many patients suffered from a myriad of complications including stroke, heart attack and paralysis. As a result, many of the patients who had undergone unnecessary surgery now require assisted brio and 95 of the patients succumbed to death. For that reason, the plaintiffs sued Tenet Healthcare Corporation for fraud, negligence, battery and elde r abuse, since most of the patients ranged amid 65 to 90 years of age.Additionally, the estates of the 95 patients who died sued the company for unlawful deaths (The Spark, 2002). Once the scandal was discovered, the investigation of FBI agent led by Michael Skeen invaded Tenets Redding Hospital that is based in California. The FBI found out that most of the patients who were required to undergo cardiac operations had not fully qualified. In light of this, a number of the patients hearts were in superb condition. After the FBIs probed, it carried further probing with an aim of authenticating the validity of the truth concerning the matter before taking further action.What did they do with the development they uncovered? The information collect by the FBI was used to sue the physician allegedly associated with the scandal. Tenet as a corporation was not aerated. It gave the California State together with the federal official government over $50 million (Bejjani et al. , 2006). Add itionally, Tenet Healthcare in like manner paid an additional $395 million to over 700 patients in order to square off litigation for the unnecessary surgeries (Taylor, 2005). How did the company reactedThe need to change its image led to a number of reactions from the company. First, the company reacted by stating that, it was not involved in the scandal based on the point that, it was the doctors who were responsible for healthcare and not the hospital. In this case, it implied that only the patients implicated were under investigation and not the hospital (The Spark, 2002). It can be mentioned that, the company had nurtured a culture where fraud could easily be perpetrated without any serious actions being undertaken.Following this scandal, the affected patients received their compensation. On the other hand, the company decided to sell Redding Medical Center which was ulterior renamed Shasta Regional Medical Center (California Nurse, 2002). Despite the circumstance that th e scandal involving Tenet Healthcare Corporation did not preclude criminal or well-behavedian charges against individuals, the company concord to collapse the fine in order to resign the allegations poised in the unnecessary heart surgery scandal. This implies that in that location was no civil streamlet in this case.According to Currier and Eimermann (2010), civil trial refers to a hook of law proceeds where the judge makes a deliberation about who wins. In this case, the judge examines the evidence provided in order to make a termination on whether the defendant should be held legally responsible for the allegations put forward-moving by the plaintiff (s). Civil cases usually involve civilians and organizations. On the other hand, a criminal trial refers to a motor lodge of law proceeding that is intended to settle criminal cases.In this case, the government can sue a person on allegations of certain criminal activities. Additionally, the justice remains to be a princip al aim of criminal trials, as opposed to civil trial, which usually seek to achieve a resolution to the dispute (Currier & Eimermann, 2010). With that said, there was no civil trial following the decision by the company to pay a fine to the government and the state of California and later an immense amount as compensation to the affected patients.Even though, this scandal was revealed in 2002, it is said that it had taken place since the early 1990s. Therefore, many people became victims of this scandal (Taylor, 2005). First, the main stakeholders were directly or indirectly affected by the allegations based on how it painted badly on the corporate image of the company. Additionally, over 700 patients and their families were subjected to emotional, psychological and financial problems. The huge charges for the heart surgery required patients to pay a lot of money in the form of medical bills (Klaidman, 2010).The shareholders were also affected because the share of the company droppe d from $50 per share in 1994 to $8 in 2002. Lastly, the competitiveness and professional qualifications of the two doctors were also questioned thus devising it difficult for them to secure employment in the future (The Spark, 2002). The case of Tenet Healthcare Corporation signifies the negative implications of scandals on the management of an organization. As mentioned earlier, the company has been burdened by financial and legal troubles due to its involvement in a number of fraud and scandals.In the end, the company suffered from the loss of public trust, investors agency and dwindling financial performance. The future of the company depends on how it willing use its past in order to redesign its present as the blink of an eye largest company in the US healthcare industry. How much money did the plaintiffs receive, other agreements As mentioned, reimbursement was made available to the government, patients and their loved ones. Towards the end of 2004, Tenet agreed that it wo uld pay the patients who had been victims of the unnecessary heart surgeries over $395 million. Do you feel it was amusement park?There have been many instances of corporations deciding to continue unsafe set because they calculate that not all of the number of people injured will bring legal action. Furthermore, the people who sue are not guaranteed a victory in solicit or can be colonised out of court, for far less than a jury will award. With that said, no amount of money can bring the dead back. I count on that the amount was not a fair one due to the fact that those doctors knew what they were doing. I do not agree with the reimbursement and I do not think the amount was fair because the families of the victims had to face a lot of pain.Some of the pain and suffering Immediate expenses associated with the death (medical & funeral), cordial anguish to the survivors, Companionship, Loss of care and Loss of earnings in the future. Background Tenet Healthcare at a time was n amed National Medical Enterprises, ranks as the second largest hospital chain in the United States. The organization owns about 114 acute care hospitals and related businesses in 16 states. Boasting with over 57, 000 active personnel and over 13, 000 attest hospital beds, Tenet Healthcare Company is a force in the United States healthcare delivery industry.Awarding doctors with financial incentives as payment for their support has been ruled out under the states stark laws however, the marketplace cites this as a necessary form of clinching and maintaining that support. Tenets hospitals back up incriminate of paying doctors for referring clients to them as a means of keeping their support. contraband behavior The illegal behavior was its defrauding of its stakeholders who came to seek medical treatment (Wynne, 2008). The doctors admitted inordinate numbers of patients being fully apprised that their capacity was lower.The doctors were also aware of the poor conditions in the hospitals but still went ahead to admit patients. In what type of court was Tenet Healthcare tried? The Tenet Healthcare scandal trial took place at the Supreme philander of assembling in St. Louis Indiana, (circuit court) (Browers, 2012 & The Federal Reporter. , 1997). All the trials including subsequent appeals took place in Court of Appeals, in St. Luis, Indiana United State The case was forwarded to the superior court in San Diego under the presiding attorney, Carol C. Lam where Tenet subsidiaries were indicted, while Nazaryans case was filed in the U.S. District Court (Wynne, 2007). After the case stone-broke out, The Federal Bureau of Investigation (FBI) broke into one of Tenets hospitals in San Diego, the Alvarado Hospital, and charged its administrator of 10 years. The charges were brought against Tenet Healthcare In the original indictment, Tenet Healthcare was aptly accused of fraud that was inclusive of illegally admitting psychiatric patients to the institutes and hik ing their charges (inflating the cost of admission and administration of medicine (Wynne, 2007). offer up identify details about the trial and provide a timeline of key trial events.After the raiding of the Redding hospital by the FBI agents in October 2002, it was revealed that Tenet Healthcare Corporation performed inappropriate and unnecessary surgeries on patients and also overbilled patients beyond the banal Medicare rates. As a result, a legal suit was initiated against the Corporations. The trial honeycombed Federal government of the United States versus Tenet Healthcare Corporations. As alleged by the government, the Corporations admitted patients who did not qualify for admission in rehab facilities.This took place between May 15 2005 and December 31 2007. Besides this inappropriate admission, they were charged with soliciting high Rehabilitation fees. This was the qui tam claim that allowed William Meshel and Man Tai to establish a legal suit against the Corporation o n behalf of the Federal government. In May 2006, Tenet went to court to dismiss these claims. Did Tenet Healthcare enter into a plea bargaining agreement? If so, to what charges did he/she plead discredited? If not, what were the final charges? Did they differ from those in the original indictment?What was the verdict? After the government dismissed the claims of the appellate since they had zero impact on the pre-existent investigations of the government, an agreement bargain was reached with the government but the other suit remained pending. The other settlement between the government and Tenet Healthcare concerned one hundred sixty-five hospitals nationwide. A summary judgment was moved on April 2007, which included the appellant as the original source of the case. The summary judgment was made in favor of the Federal government.As a result, Tenet accepted to pay the fines of overbilling of Medicare deep down its facilities after pleading shamed to the charges. What was the fourth dimension? Did you feel it was fair? resign our position. Tenet Corporation was discredited of overbilling, but the appellant who established the suit were unqualified to do so on the terms of qui tam. This was simply because they did not possess independent and original knowledge of Tenets deceitful activities and practices in Medicare. Consequently, Tenet had undertaken the responsibility of reparations of damages to both the government and its patients.This sentence was not fair. Tenet had more liabilities on top of Medicare overbilling. A large number of its patients died due to unnecessary surgeries and rehabilitations. The appellant, acting in the public interest, had the salutary to make their case heard for justice to be done, something which the district court denied and dismissed. Did they differ from those in the original indictment? What was the verdict? They did not differ much from the original indictment in that they were the same issues that were evidenc ed in the first indictment overbilling and malpractice.The verdict was arrived at after Tenet pleaded guilty of overbilling its Medicare and admitting stable patients into the rehabilitation facilities. Tenet Healthcare Corporation was, therefore, found guilty of overbilling its medical services. It was also found that the qui tam of the two appellants was not well-founded due to the fact that they were not the primary source of such information. The information was already in the public domain when they moved to court. Did Tenet Healthcare appeal? If so, on what grounds did he/she base the appeal?Tenet Healthcare corporations did not appeal in this case since it had passed a compromise with the government to pay the fines, an action that was supposed to redeem the image of the health care sector and to serve justice to the victims. Did Tenet Healthcare have mens rea and actus Reus? Justify your position Yes. This is because they had agreed to settle the fine, which is a sign of p ass judgment that their activities were not acceptable and went against the law. They, therefore, accepted the liability of their profit-driven actions.The general basis for dreadful liability in criminal law is that the defendant must be proved to have committed a guilty act whilst having had a guilty state of mind. The physical elements are collectively called the actus Reus and the accompanied mental state is called the mens rea. Moreover, it is the fundamental duty of the prosecution to prove both of these elements of the wickedness to the satisfaction of the judge or jury beyond reasonable doubt. In the absence of such proof, the defendant will be acquitted.According to Cheeseman (2010) actus Reus is guilty act, which is the effective performance of a criminal act and mens rea is evil intent the self-discipline of the requisite state of mind to commit a prohibited act. What ingrained protections do your subjects have? Equal protection and right to appeal for the accused an d plaintiff, by the case brought against either party (Mann, 2008). The Tenet criminal trial encompasses several cases and conspiracies charged against the Tenet Healthcare Corporation. References Brown, G. (2012). The trait & style salute to leadership. Houston Chronicle.Retrievedfrom http//smallbusiness. chron. com/trait-style-approach-leadership-21103. html Cashen, L. H. (2009). 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