Tenet Workers’ Comp Charges May Be Cut

Tenet Healthcare Corp. agreed to work to reduce the company’s revenue from medical cases involving California’s workers’ compensation system.

Gus Valdespino, Tenet’s senior vice president of operations, told the state Senate Committee on Labor and Industrial Relations that the Santa Barbara-based hospital chain had voluntarily cut its charges for a specific type of Medicare coverage and is “willing to do this for workers compensation reimbursement,” adding that it probably would require regulatory or legislative changes.

Valdespino’s remarks came during a hearing chaired by state Sen. Richard Alarcon (D-Sylmar) on the hospital chain’s workers’ compensation billing practices, which critics charge greatly exceed those of other hospitals. But Valdespino disputed the idea that Tenet was driving up workers’ compensation costs in the state, saying the chain received $119 million in workers’ comp payments in 2002, or 4% of the statewide total.

Alarcon said Tenet will come up with a proposal for specific cuts in its workers’ compensation next week.

-- Ronald D. White