Tenet finally sheds last piece of health insurance business
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.