Wednesday, April 5, 2006

Second Mistrial in Tenet Hospital Prosecution

The second trial of Tenet Healthcare Corp. and the former CEO at its Alvarado Hospital Medical Center ended in another mistrial after the jury deliberated for 60 -- yes, sixty -- days.  The government charges relate to relocation agreements that prosecutors claim were really disguised kickback arrangements to encourage the doctors to refer patients to the hospital.  The retrial in San Diego, which included U.S. Attorney Carol Lam as a member of the prosecution team, lasted seven months and went to the jury in December 2005.  After two long trials in which the government was unable to secure a guilty verdict, I think it's fairly likely that the government will look to the civil investigations of Tenet by the SEC and CMS as the better means to a final resolution of the issues.  A Bloomberg story (here) discusses the mistrial and other investigations. (ph)

Fraud, Prosecutions | Permalink

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