Tenet California, a region of Tenet Healthcare Corp., and Health Net Inc. announced a settlement agreement resolving substantially all past payment disputes involving Tenet’s California hospitals and Health Net.
As part of the settlement agreement, Health Net will pay Tenet $28.5 million to resolve outstanding claims that arose prior to the previously announced new, two-year contract entered into by both parties that took effect Nov. 1, 2004. Under that contract, Health Net of California’s 2.4 million members continue to have access to health care services provided at Tenet California’s 17 acute care hospitals and other facilities in the state.
“We are very pleased to have put this dispute behind us, and we look forward to a long and mutually beneficial relationship with Health Net, as well as our other managed care partners, in California,” said Stephen Newman, M.D., chief executive officer of Tenet California. “This settlement, combined with the new contract, provides a platform for stability for both companies in the California market.”
“We believe the breadth and stability of our provider network is one of the most important benefits we bring to our members,” added Stephen Lynch, president of Health Net of California. “We are pleased to have put these issues with Tenet in the past and look forward to a mutually rewarding partnership in the future.”
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