The Future of Tenet HealthCare Corporation In first beginning the research into Tenet HealthCare Corporation, my feeling was that the future of the company was strong. According to their own press releases, they have appointed new Chief Executive Officers at two of their hospitals, and signed a multi-year agreement with two hospitals in Pennsylvania that covers the services of doctors employed by not only those two hospitals, but their subsidiaries. However, upon digging further, I discovered that the future of the company may not be such an easy task. According to the New York Times, they are currently fighting off an unsolicited bid from another health care company to take over the business for $3.3 billion. Community Health Care, another for-profit healthcare giant, made the bid in an attempt to capitalize on what has been termed as Obama’s overhaul of hospitals and doctors, consolidating with Tenet HealthCare and becoming the largest for-profit health care association in America. Tenet, however, was not ready to give up so easily. They have instead inked a deal with Aetna, another health care giant, to continue to provide services to both Aetna commercial and Medicare Advantage customers. They have also rejected the bid made by Community Health Care, and taken the hard step of literally swallowing a ‘poison pill’, according to the Dallas Business Journal – filing paperwork to cover their incurred $2.0 million losses, and protect the rights of their stockholders, as well as trying to make sure those looking to take over do not succeed. Amid the overhaul of the nation’s health care system, and the eventual consolidation of health care companies, Tenet’s future looks uncertain. If it can continue to hold off bidding rivals, and turn some of its losses into profits, then it may yet succeed. But based on the research that I have uncovered, its future does not look strong. Sources: Black, Rick. (4 February 2011) Tenet Announces Agreement with United HealthCare Community Plan. Retrieved from http://www.tenethealth.com/News/Documents/2011%20Press%20Releases/Tenet%20Announces%20Agreement%20with%20UnitedHealthcare.pdf. De La Merced, Michael J. (2010, December 29). Community Health Unveils $3.3 Billion Bid for Tenet. New York Times. Retrieved from http://dealbook.nytimes.com/2010/12/09/community-health-unveils-3-3-billion-bid-for-tenet/?ref=tenethealthcarecorporation. Panchuk, Kerry. (2011, January 10). Tenet: Latest to Swallow Poison Pill? Dallas Business Journal, Retrieved from http://www.bizjournals.com/dallas/blog/2011/01/tenet-latest-to-swallow-a-poison-pill.html.
Tenet Healthcare cooperation