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Psychiatric Care Problems Involving Tenet Healthcare

"Let the message be very, very clear: We've made health care fraud a major
law enforcement priority, and we're going to pursue it as vigorously as we
possibly can." Attorney General Janet Reno |
What do you
think? Sign the guestbook and speak out!
| 1985 |
Accusations
begin to surface that National Medical Enterprises (now called Tenet Healthcare
Corporation) was bribing politicians. NME responds: "This company
does not engage in illegal and improper conduct. God help anyone that
does." |
| 1988 |
NME memo:
"To Clear up misconceptions. Example. We exist as a company to provide a
high quality service to our patients (and in some cases society). I have heard
individuals within the company make remarks along these lines and it is
absolute nonsense. Lets call a spade a spade: We are here for one reason
only - to make a profit for the shareholders who put up the money so that
we could exist in the first place." |
| 1991 |
Allegations
surface that NME's huge profits are a result of criminal and unethical
conduct and exploitation of the people who had come for help. Dr. Robert
Stuckey, NME high-ranking official, appears on a Discovery Channel special, The
Justice Files, and admits that, among other things, if a person entered one of
their hospitals with a diagnosis of alcoholism and the insurance would pay
$10,000, but would instead pay $50,000 for depression, the diagnosis would be
changed to depression. Senator Mike
Moncrief (Texas) opens a Senate inquiry, and hundreds come forward to speak
about the abuse and fraud, as well as the personal misery they had gone through
under the care of NME. Texas Attorney General obtains a settlement from NME for
$10 million, the maximum penalty allowed. The settlement required that each of
NME's hospitals have an ombudsman on staff.
|
| 1991-92 |
Dr. Michael Wynne, a surgeon in Australia begins to gather
information and investigate NME as it attempts to move into Australia and
Singapore. Legal threats against Dr. Wynne begin, including a defamation
action (all suits were eventually dropped and the plaintiffs were ordered to
pay court costs). |
| 1991-94 |
Shareholders
begin suing NME, claiming they were defrauded. SEC commences an action and
obtains injunctions to restrain NME from engaging in illegal activities. SEC
says that unless they're monitored, NME will keep doing what they've been
doing. |
| 1992 |
Dr. Stuckey,
the whistle blower who had the longest association with NME's Psychiatric
Institutes of America (PIA) and who had dealings with senior staff, dies
suddenly, alone on his boat, shortly before he was to give evidence to the
US House of Representatives inquiry in 1992. Led by Congresswoman Pat Schroeder (Colorado), the US House of
Representatives opens an inquiry, leading to a report entitled "Profits
of Misery." It was shown that children were a potential "gold
mine" to hospitals, because insurance would allow up to six months of
inpatient treatment. 19 insurance companies begin actions against NME,
alleging fraud and NME settles, paying $89 million and $125 million in two
separate settlements.
|
| "The introduction of the commercial
enterprise mentality to psychiatric care, the abandonment of ethical,
scientific principles by many mental health care providers, and the indulgence
of greed have allowed these developments to occur. The provision of mental
health care, especially as it relates to the psychiatric hospital industry, has
largely changed from what was once a professional and caring environment and an
honourable part of the medical world, to one that is based on commercialism and
profit. The changes that have developed over the past decade are very
pervasive, deeply entrenched, and have occurred across the entire United
States." Dr. Charles Arnold in his testimony to Congress. |
| June 1994
|
Former psychiatric division
executive in Dallas pleads guilty to arranging up to $40 million in bribes
to doctors and others.
The U.S. government formally announces that it
has settled its giant fraud case with National Medical Enterprises, but it said
it continues a far-reaching investigation into individuals and businesses
suspected of accepting kickbacks and bribes.
The $379 million settlement is the largest
in American history. The settlement, which includes a $33-million criminal
fine, settles charges that NME paid kickbacks and bribes to doctors,
referral services and other people so they would refer patients to the
company's psychiatric and substance abuse hospitals in 30 states, then
fraudulently billed Medicare, Medicaid and other federal programs for those
services. The settlement also includes NME pleading guilty to six counts of
paying illegal kickbacks for patient referrals.
|
| Oct 1994 |
Doctors caught up in the scandal
sue patients who complained, charging defamation, slander and libel. But
Robert F. Andrews, a Ft. Worth attorney who is named in the psychiatrists'
suit, likens the doctors to "a bunch of deer that are caught in the
headlights. They have struck out at the only people who they perceive to be
weaker than them, which is their former patients." |
| 1994 |
New NME CEO Jeffrey C. Barbakow:
"The number one priority for our board is to drive shareholder
value." |
| 1995 |
NME changes name to Tenet
Healthcare NME official files
defamation suit against Dr. Wynne. Wynne makes three court requests to get
documents and detailed complaints, but the papers are never produced. Complaint
withdrawn and official is ordered to pay Dr. Wynne's legal costs. Three days
later, Dr. Wynne is hit with another defamation suit, but it also ends up being
dismissed.
Charles E. Trojan a former chief executive of a
then-NME-owned psychiatric hospital in Chula Vista is convicted on one
felony charge of sending threatening communications to a former top manager
of the hospital. In the letter to Clawson, Trojan wrote, in part: "The
value of your life decreases every day. We have your address. So expect company
one dark night when you least expect it. Your life is worthless
now."
|
| 1996 |
Tenet lawyer addresses the
governmental investigation: "They treated us like criminals. We had to
enter into an agreement with the government. It was a very irritating
process for some of us to go through....We have to do background checks and
can't hire anybody with criminal backgrounds;...We worry about DFEs
(disgruntled former employees) and PWBs (potential whistle blowers) reporting
problems on their own..." Dr.
Michael Wynne writes to CEO Jeffrey C. Barbakow about his concerns that Tenet
has not changed its corporate policy. Barbakow never responds. "I
believe that Tenet's committees inaction in these matters and the company's
repeated efforts to ensure my silence speaks loudly for the seriousness and
validity of these matters," says Dr. Wynne. Tenet responds with lawsuits.
|
| 1998 |
Ontario government files $175
million suit against Tenet, alleging it defrauded the province and went
"trolling" for patients to ship into Wisconsin in order to milk the
Ontario health plan. The suit claims that Tenet employees referred to the
health plan as the "Canadian gravy train." |
| Feb 2000 |
Federation of American Hospitals
issues statement calling for a grassroots movement to oppose an expanded
Whistleblower's Act. The Federation is a powerful lobbying group dominated
by the two largest healthcare corporations, one of whom is Tenet. They have an
entire "do-it-yourself grassroots" section that tells corporations
how to recruit employees to start campaigns that will benefit their goals.
"Since 1966, The Federation,
through its dedication to a market-driven philosophy, has evolved into one of
Washington's most influential health care policy advocacy
organizations."
The Washington Post recently printed a story
about the growth of "grassroots movements" that are actually
implemented by huge corporations.
"It's ethically problematic when a company
creates entities but then tries to pass them off as authentic and spontaneous
grass-roots organizations," said Thomas Murray, president of the Hastings
Center, a nonprofit group that examines medical ethics. "What bothers
me is the deceptiveness."
|
| Aug 2000 |
Mrs. Kathleen Garrett of St.
Louis receives shock treatments that she has repeatedly said she doesn't
want. Her son contacts activists in the area who spring into action. A
public campaign against the treatment is waged, and Tenet-owned Des Peres
Hospital calls Mrs. Garrett's son, Steve Vance to announce they will release
her the following day. A celebratory
welcome is planned to welcome Kathleen back to freedom, but that morning,
her son learns that she has been shocked again.
Upon arrival to the hospital, Mrs. Garrett
tells her son that they were trying to coerce her into signing a statement
saying she wanted more shock. "I don't want it," she tells her
son. "Please."
Mrs. Garrett returns home and receives phone
calls from a "home health care aide" from Des Peres who want to
visit. Concerns are raised that the hospital will show up and take her away for
more shock while Steve is at work. He changes her phone number. A home health
care aide shows up at Mrs. Garrett's residence, but per strict instructions,
they are turned away and not allowed to see Mrs. Garrett.
|
| Sept 2000
|
Juli Lawrence, owner of Shocked!
ECT/ect.org (this website) receives
a letter from a law firm that claims it represents Tenet Healthcare
Corporation. Their demands include removing all items from the website with
"notoriety and prominence," and they threaten legal action if
she does not comply. Ms. Lawrence responds with a letter
asking for detailed information, but does not receive a reply. She fully
expects to be hit with a SLAPP (Strategic Lawsuit Against Public Participation)
lawsuit, and is standing by. She vows that she will not be silenced.
She suggests, as the Shocked! ECT book of
the month:
QBVII by Leon Uris.
|
| Feb 2001 |
Tenet finds
itself at the edge of controversy once again when federal and state
officials threaten to shut down its SouthPointe Hospital in St. Louis because
of conditions and treatment in its psychiatric unit. SouthPointe is one of the
hospitals involved in forcibly electroshocking Kathleen Garrett in the summer
of 2000. SouthPointe Hospital in St. Louis is under investigation by
state and federal authorities because of numerous incidents that threatened the
safety, health and privacy of its psychiatric patients.
A
listing of psychiatric facilities in St. Louis. Tenet-owned hospitals are
in red.
SouthPointe Hospital in St. Louis will remain open -- for
now -- while state investigators assess the hospital's plan to correct
conditions they say put psychiatric patients in danger.
Missouri Health Department officials have approved
SouthPointe Hospital's plans for correcting conditions that government
inspectors said endangered psychiatric patients. The approval averts a shutdown
of the south St. Louis hospital.
Bedlam at SouthPointe: You might expect hefty fines for
such shocking breeches of federal and state regulations. You might expect heads
to roll at SouthPointe Hospital, where it all happened in the psychiatric ward.
You might expect the hospital's psychiatric unit to be shut down, at least for
an hour or two. You might, but most hospital administrators wouldn't. They know
better.
|
| More Info
|
Be sure and
sign the guestbook. I'll be putting quick updates there about Mrs. Garrett
and the case (because it's quick and easier than actually writing out some
HTML)
Read some of the news stories about NME's
exploits.
The
horrors of being a patient at NME: She had agreed as a 17-year-old to enter
the hospital, expecting a brief respite from troubled family relationships. But
once the doors closed, Ms. Stafford said, she remained inside for 309 days,
many of them behind blackened windows in cruel darkness.
Has
Jeffrey Barbakow changed Tenet's stripes? Critics don't think so; they
think his policies hurt patients; employees resent his grandiose salary and
bonuses. Claim he's "not sharing the wealth."
Owner admits
kickbacks: One of the nation's largest psychiatric hospital chains
yesterday pleaded guilty to kickback and health care fraud charges and agreed
to pay a record $379 million in penalties for illegal conduct in hospitals in
New Jersey and 29 other states.
Medical firm
to plead guilty: A division of National Medical Enterprises will plead
guilty to charges of Medicare fraud and conspiracy and pay a record fine of
$362.7 million to settle a sweeping federal investigation, company officials
said Tuesday.
Ex-psychiatric exec pleads guilty: A former Dallas hospital
executive confessed Monday that he bought patients with at least $20 million in
bribes to referring physicians and other health care professionals.
61 sue
NME: Sixty-one plaintiffs sued National Medical Enterprises Inc. on Monday,
alleging that they were "lured or forced" to its psychiatric
treatment centers as part of a fraudulent scheme.
American
health care. Mishap in the operating theatre: From the Economist (UK), an
informative article about the economics of the health care business. Included
is a paragraph about Tenet, formerly known as NME.
Ontario
sues Tenet Healthcare; says Tenet employees called Ontario health system
the "Canadian gravy train."
You can learn more about SLAPPs
(Strategic Lawsuits Against Public Participation) here.
Listing of Tenet Hospitals - FYI
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