Posted on Wed, Apr. 09, 2003
Jeffrey C. Barbakow will remain chief executive. The board eventually will comprise outsid-ers
SANTA BARBARA, Calif. - Tenet Healthcare Corp.'s chief executive officer, Jeffrey C. Barbakow, will step down as chairman and as a member of the board of the hospital chain while remaining CEO, company officials said yesterday.
The announcement came as a shareholder committee issued a report saying the company could face up to $6 billion in legal liability growing out of its practices for billing the Medicare program.
"As long as Tenet's board fails to act independently, as long as existing senior management re-mains in place, the value of the company remains questionable," chairman M. Lee Pearce of the Tenet Shareholder Committee said in a statement.