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CMA concerned about possible widespread contract terminations by Tenet Healthcare Corp.

June 11, 2014
Area(s) of Interest: Payor Contracting Payor Issues and Reimbursement 


Physicians and medical staffs in many different counties have notified the California Medical Association (CMA) about recent action by Tenet Healthcare Corp. that could negatively affect all 11 of Tenet’s hospitals in California. CMA attorneys are looking into the issues and already have some serious concerns.

There are reports that Tenet intends to terminate all existing contracts for anesthesiology, ER and hospitalist services at its hospitals. The Dallas-based hospital system would then award one contract to an out-of-state medical group to provide such services to all of its hospitals in California. Such a move could seriously undermine medical staff self-governance at Tenet’s hospitals and violate provisions of medical staff bylaws.

CMA also is concerned about the serious negative impact on quality of care should Tenet unilaterally and abruptly terminate existing service providers who have been providing care in Tenet’s hospital communities, some for many decades.

CMA is continuing to look into the issue and will work with local county medical societies to address Tenet’s actions. Physicians who are impacted are urged to contact their local county medical society or CMA directly.

Contact: CMA legal information line, (800) 786-4262 or legalinfo@cmadocs.org.

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