Tenet fi­nally sheds last piece of health in­sur­ance busi­ness

Modern Healthcare - - Regional News - —Shelby Liv­ingston

Tenet Health­care Corp. sold its small Medi­care Ad­van­tage plan serv­ing Cal­i­for­nia se­niors—mark­ing the Dal­las-based hos­pi­tal sys­tem’s exit from the health in­sur­ance busi­ness, first an­nounced in 2016. Tenet served about 9,800 mem­bers in North­ern and South­ern Cal­i­for­nia through the Golden State Medi­care health plan since 2010. A hold­ing com­pany af­fil­i­ated with Con­nected Care Group pur­chased the plan.

Tenet in 2016 said it would di­vest its health plan busi­nesses be­cause they weren’t a core part of its long-term strat­egy. That year, Tenet owned six health plans cov­er­ing about 140,000 peo­ple. The hos­pi­tal sys­tem sold, di­vested or dis­con­tin­ued four health plans in Ari­zona, Michi­gan and Texas in 2017. It sold its Chicago-based pre­ferred provider net­work on March 1 of this year, a Tenet spokes­woman said.

Tenet’s health in­sur­ance busi­ness in the past has dragged down the com­pany’s earn­ings, de­spite ac­count­ing for a small por­tion of the com­pany’s to­tal op­er­at­ing rev­enue. The lion’s share of Tenet’s op­er­at­ing rev­enue—78%—in 2016 was from its gen­eral hospi­tals. Net op­er­at­ing rev­enue to­taled $19.2 bil­lion in 2017.

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