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    Capital Financing in Health Care

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    In a 700-1050 paper. describe your research on a health organization (hospitals, clinics, physician group practices) that is in trouble financially. Cite three references less than 18 months old. I was thinking about Tenet Healthcare.

    I need help with this question to get me started on this assignment. Thank you.

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    You probably already know this, but it's worth mentioning, that BrainMass policy is such that OTAs are NOT to do complete assignments for students. In keeping with this policy then, I will provide information on your choice of Health care facility, although Tenet Healthcare may be a too a broad choice.

    This is good choice with lots of information...

    Your tentative outline may look something like this (these then become your papers headings for organization):

    I. Introduction (about ¼- ½ page) - Introduce Tenet Healthcare Briefly and the financial situation and associated problems; end introductory paragraph with a brief statement of the purpose of your paper... The purpose of this paper is to investigate the financial situation of the Tenet Healthcare Corporations. Specifically we will look at ...."
    II. What cause the problem? (about 1-1 ½ pages)
    III. What are we doing to fix it? (about 1-1 ½ pages)
    IV. Conclusion (about ½ page brief summary of info from the above three sections)

    Tenet Healthcare Corporation, through its subsidiaries, owns and operates acute care hospitals and related health care services. Tenet's hospitals aim to provide the best possible care to every patient who comes through their doors, with a clear focus on quality and service. (http://www.tenethealth.com/TenetHealth).

    From the perspective of the Tenet Hospitals, well this is one of their ads:

    Strong Hospitals Serving Communities Across America.

    With 18,024 licensed beds, the 74 acute care hospitals owned and operated by Tenet subsidiaries in 13 states offer a wide array of medical services and serve as the anchors for our health care delivery networks.

    See http://www.tenethealth.com/TenetHealth/HospitalProfiles/alvaradohospital for searches by hospital name,

    What does the News have to report?

    Troubles grow as Tenet ends 2004 with $2 billion quarterly loss
    The hospital chain's financial problems are being compounded by its legal woes.
    By Katherine Vogt, AMNews staff. March 28, 2005.
    Tenet Healthcare Corp. announced a $2 billion loss for the fourth quarter of 2004, as developments with its legal woes kept the troubled hospital chain in the public spotlight.
    The Dallas-based company said it suffered in the fourth quarter from decreases in patient volumes and several hefty charges, including a $1.1 billion asset writedown. The total loss for the three months that ended Dec. 31 compared with a loss of $954 million for the same period a year earlier. For the full year 2004, Tenet posted a $2.6 billion loss, or $5.66 per share.
    With this article
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    Tenet also said its fourth-quarter revenue fell because of its Compact with the Uninsured program, which provides discounts to uninsured patients. Total operating revenue for the period was $2.41 billion, down from $2.46 billion a year earlier.
    The program for the uninsured may be bolstered under a proposed legal settlement that was announced March 10 and aims to resolve several class-action lawsuits that challenged how the for-profit hospital chain charges patients who have little or no insurance.
    Under the agreement, Tenet, which did not admit liability, would adopt policies affecting the uninsured, including discounts, reasonable payment schedules and financial counseling. Tenet would also provide reimbursements to uninsured patients who paid more than a certain percentage of hospital gross charges between June 15, 1999, and Dec. 31, 2004.
    The settlement, which was subject to court approval, could resolve class-action lawsuits pending in nine states. Tenet did not disclose how much it expected to pay if the agreement was approved.
    Meanwhile, a federal judge in San Diego ruled that a case can go forward against a Tenet hospital accused of paying illegal kickbacks to physicians. Tenet officials said the ruling dismissed two counts in the case involving Alvarado Hospital Medical Center but rejected an effort to throw out 18 others.
    Prosecutors have alleged that Alvarado and another Tenet subsidiary paid more than $10 million to fund physician relocation agreements between 1992 and 2002. They claimed a "substantial portion" of the money went to established doctors to induce them to make referrals to Alvarado.
    A mistrial was declared in the original case on Feb. 17 after jurors were unable to reach a verdict following nearly four months of testimony. A retrial had been set for March but was pushed back until at least early May.
    In other developments, Boca Raton Community Hospital in Florida filed a lawsuit against Tenet on March 2, the same day the Florida attorney general and 13 hospitals sued the company for allegedly overbilling Medicare by more than $1 billion. According to published reports, Boca Raton's lawsuit mirrors the other and seeks to represent 4,000 acute care hospitals nationwide.
    Tenet officials say that the allegations in all the hospitals' lawsuits are unwarranted. (Source: http://www.ama-assn.org/amednews/2005/03/28/bisb0328.htm).

    II. What caused the financial problems for ...

    Solution Summary

    Through research and examples, this solution assists in researching a health organization (hospitals, clinics, physician group practices) that is in trouble financially. References are provided.