traded as nyse thc s & p 500 component industry healthcare founded 1967 headquarters fountain place dallas texas u.s. key people trevor fetter president ceo chairman services hospital management revenue us 16.6 billion 2014 1 operating income us 925 million 2014 1 net income us 76 million 2014 1 total assets us 18.141 billion 2014 1 total equity us 785 million 2014 1 number of employees 130 000 december 2015 2 website tenethealth.com tenet healthcare corporation is a multinational investor owned healthcare services company based in dallas texas . through its brands subsidiaries joint ventures and partnerships as of june 2015 tenet operates nine facilities in the united kingdom and over 400 outpatient centers 3 in 16 american states . 1 4 also in the us tenet operates 20 short stay surgical hospitals 2 and 87 general acute care hospitals 2 in 14 states 5 primarily in california florida michigan and texas . 1 4 6 tenet has more than 20 000 licensed beds 1 and 130 000 employees 2 and the company s hospitals offer acute coronary and critical care ; operating and recovery rooms ; clinical laboratories and pharmacies ; and radiology respiratory oncology orthopedic physical therapy and organ transplant services . 1 7 tenet also operates six health plans and 12 accountable care networks . 1 4 since its founding in 1967 tenet has launched a number of brands and acquired several large health care companies . in 2008 tenet founded conifer health solutions which serves more than 700 clients in the healthcare industry including nearly 300 hospitals . as of 2015 conifer processes 25 billion in net revenue annually and operates in 42 states . 8 9 tenet launched medpost urgent care in may 2014 which is a network of urgent care centers based in the lower united states . 10 in 2013 tenet completed its acquisition of vanguard health systems inc. an investor owned hospital company whose operations complemented tenet s existing business . 11 the acquisition created the third largest investor owned hospital company in the u.s. in terms of revenue and the third largest in number of hospitals owned . 12 in june 2015 tenet acquired united surgical partners international uspi which made tenet the largest operator of outpatient surgery centers in the united states . 13 shortly after tenet moved from no. 229 to no. 170 on the fortune 500 . 14 contents 1 history 1.1 early years 1967 99 1.2 turn of the century 2000 13 1.3 acquisitions and other operations 2014 1.4 recent developments 2015 present 2 operations 3 major brands 3.1 medpost urgent care 4 awards and recognition 5 philanthropy 6 controversies 6.1 psychiatric fraud 6.2 unnecessary heart surgeries 6.3 medicare fraud 6.4 hurricane katrina 6.5 tax dodging and lobbying 6.6 florida pediatric heart surgery standards 7 see also 8 references 9 external links history edit early years 1967 99 edit tenet was founded in 1967 by attorneys richard eamer leonard cohen and john bedrosian as national medical enterprises nme and headquartered in los angeles california . 15 by 1975 nme owned operated and managed 23 hospitals and a home health care business . 15 16 in the 1970s nme expanded into hospital construction and bought five florida hospitals . by 1981 nme owned or managed 193 hospitals and nursing homes and became the third largest healthcare company in the u.s. 15 in the mid 1980s nme shifted its focus to specialty hospitals . by 1990 the company had 200 hospitals in its network and was the second largest hospital company in the u.s. 15 16 after some scandals in the early 1990s see below nme divested its specialty facilities . 15 tenet possessed a dominant market share in southern california at the time and envisaged the same prospects in south florida louisiana texas and the philadelphia pa area . in 1994 nme bought american medical holdings for 3.35 billion which strengthened its presence in southern california and south florida and extended its reach into new orleans la and texas . 17 18 following completion of the acquisition nme changed its name to tenet healthcare corporation . 17 in 1996 tenet ceo jeffrey barbakow moved tenet s headquarters from santa monica ca to santa barbara ca. 19 in 1998 tenet purchased eight philadelphia hospitals owned by the bankrupt allegheny health education & research foundation for 345 million . 20 turn of the century 2000 13 edit in 2002 one of tenet s hospitals came under scrutiny for its surgical practices and another was investigated in a kickback scheme see below . 21 federal investigations into the company s billing practices particularly those related to medicare began late in 2002 leading to a decline in tenet s stock price of about 70 % . 15 19 in 2003 trevor fetter became ceo of tenet and started commitment to quality an initiative to improve the quality safety service and outcomes of the care and services provided by tenet . 22 23 to rebuild its ethics and compliance programs tenet hired a chief compliance officer to report directly to the company s board of directors 24 25 in 2003 tenet sold or closed 14 hospitals and closed more than 20 facilities in 2004 to achieve its financial performance goals . 26 27 also in 2004 tenet moved its headquarters from santa barbara ca to dallas tx . 19 in 2006 tenet agreed to pay 725 million to the justice dept. to settle allegations of unusually high medicare payments to tenet hospitals in 2000 to 2002 . 28 29 tenet also entered into a 5 year corporate integrity agreement with the u.s. department of health & human services that required the company to provide detailed financial reports on its patient mix collection rates and accounts receivables . 30 31 in 2007 tenet appointed former florida governor jeb bush to its board of directors to improve its reputation . 32 in 2008 tenet launched conifer health solutions a healthcare services company . conifer currently serves nearly 300 hospitals throughout the u.s. and processes 25 billion in net revenue annually . 8 9 in early 2009 the price of tenet stock briefly dipped below 4 per share after cresting above 200 per share in 2002 . 33 by the end of 2009 the company rebounded to become the s & p 500 s number 2 performer with an operating revenue and net profit of 9 billion and 181 million respectively . 34 35 36 in may 2011 tenet s board rejected a 7.3 billion takeover bid from community health systems inc. 37 the deal would have created the largest hospital company in the u.s. 37 in april 2012 tenet agreed to pay 42.75 million to resolve allegations that it improperly billed medicare between 2005 and 2007 . 38 an internal investigation by tenet revealed medicare billing irregularities and the company reported itself to the u.s. government . in may 2012 tenet sold diagnostic imaging services inc. its former diagnostic imaging center business in louisiana . in august 2012 tenet sold its creighton university medical center in nebraska . 1 in 2013 tenet acquired vanguard health systems based in nashville tn in a deal worth 4.3 billion . 39 40 through its acquisition of vanguard tenet acquired 28 hospitals and 39 outpatient centers that serve communities in arizona california illinois massachusetts michigan and texas . 1 40 41 the acquisition created the third largest for profit hospital chain in the u.s. in terms of revenue and the third largest in number of hospitals owned . 12 42 through the end of 2013 tenet s stock price increased 816 percent from 4.60 to 42.12 over the previous five years . 43 through the acquisition of vanguard health systems tenet also acquired abrazo community health network the associated hospitals are located in arizona . acquisitions and other operations 2014 edit in 2014 tenet ranked 229 in the annual fortune 500 list of the largest american companies . 42 in march 2014 tenet formed a partnership with the yale new haven health system to create a healthcare delivery network in connecticut . 44 then in may 2014 tenet announced plans to partner with the texas tech university health sciences center in el paso to develop a new 140 bed teaching hospital on the city s west side . 45 tenet launched medpost urgent care in may 2014 which is a national network of urgent care centers based in the lower united states . 10 in june 2014 tenet acquired a majority interest in texas regional medical center a 70 bed community hospital in sunnyvale texas east of downtown dallas . 46 also that month tenet opened resolute health hospital in new braunfels texas . the 128 bed hospital is located on a 56 acre wellness campus near san antonio texas and is tenet s 79th hospital and 19th in texas . 6 47 in july 2014 tenet announced that saint mary s hospital in waterbury connecticut would be acquired by a subsidiary of the company with the hospital s religious directives and uncompensated care policies remaining intact . this continued a trend of tenet allowing a model of common ownership where each acquired hospital has its own agreement conditions . 48 in late july tenet signed a letter of intent to form a joint venture which would acquire and operate three hospitals in southern arizona two in tucson and one in nogales . in the agreement tenet would be the majority owner and sole operator of the hospitals . 49 on august 1 2014 tenet acquired emanuel medical center 5 a 209 bed hospital located in turlock california 50 bringing the number of tenet s hospitals at the time to 80 nationwide . 5 tenet announced in december 2014 that they had signed a letter of intent with the baptist hospital system in birmingham alabama to form a joint venture to own and operate the four baptist hospitals plus brookwood medical center already owned by tenet . tenet would be the joint venture s majority owner . 51 in may 2014 tenet rebranded its diverse urgent care centers into a wholly owned subsidiary medpost urgent care . previously tenet s urgent care locations often took on the names of nearby tenet hospitals . alan cason vp of tenet s outpatient services was named medpost ceo . at the time medpost has 23 facilities with six in texas and others in arizona california florida georgia mississippi missouri and tennessee . 10 52 as of the fourth quarter 2014 tenet has turned a profit explained by higher admissions and revenue admissions through medicaid increased by 20.5 % after the affordable care act . hospital admissions also saw an increase during the last quarter of 2014 while the company s bad debt expense ratio decreased . at the same time its full year financial projections affirmed a price of 1.32 to 2.4 per share with revenue of 17.4 to 17.7 billion 53 with its earnings topping 1.95 billion . 54 on may 7 2015 the tenet board of directors appointed trevor fetter tenet s president and ceo as chairman of the board . 55 in 2015 the company moved from no. 229 to no. 170 on the fortune 500 . 14 recent developments 2015 present edit in march 2015 tenet announced an agreement to acquire a majority interest in united surgical partners international uspi which would make tenet the largest operator of outpatient surgery centers in the united states . tenet also announced an agreement to acquire aspen healthcare in great britain . 13 on june 16 tenet finalized their acquisition of aspen healthcare ltd. and uspi . the uspi transaction raised the number of outpatient centers operated by tenet to over 400 over double what they had operated prior . it also again made tenet a multinational company as tenet acquired nine british healthcare facilities . 3 bill wilcox remained ceo of uspi with kyle burtnett of tenet joining uspi as