Daniel Freeman Hospital: Battle may be won but war is far from over


By Theresa Hulme

The Marina’s Daniel Freeman Hospital announcement that it will remain open is a huge victory for local activists and community members.

The good news came in April that the Daniel Freeman Medical Center will remain open for an unspecified amount of time. The Marina hospital provides much needed emergency and non-emergency services to the rapidly growing areas of the Del Ray, Santa Monica, Venice, and Westchester communities. The Medical Center found itself suddenly gasping for air and fighting for its life as it was nearly bulldozed to the ground to make room for yet another hotel and parking lot in its place.

The Daniel Freeman Hospital is owned by the second largest hospital chain in the nation, Tenet Healthcare Corporation. The scandal-ridden Tenet purchased the hospital in December 2001 from an order of Catholic nuns who operated the facility as a non-profit entity. The for profit Tenet, a Fortune 500 Company and favorite on Wall Street, has a pattern of buying up hospitals all over the U.S., trimming costs then shutting them down.

Thanks to a committed group of local activists and volunteers, a community organization called SOMH (Save our Marina Hospital), the closure has been staved off indefinitely. SOMH leader and Playa del Rey resident, Julie Inouye was instrumental in the battle to keep the hospital open. Tenet first announced it had no plans to close the Marina hospital but within weeks the property was put up for sale. Community members concluded Tenet to be as untrustworthy as their stock price. Inouye immediately formed SOMH with help from friends and neighbors and even summoned the powers of State Attorney General Bill Lockyer onto the scene. Lockyer declared that Tenet had not fulfilled the requirements of a hospital operator seeking to shut down a hospital and filed a lawsuit. The Attorney General stated that Tenet had not fulfilled its obligation to the community to allow for an open forum of debate regarding the closure. Lockyer ordered Tenet to keep the hospital open.

A little research on the part of SOMH peeled back the layers of fraud and lawsuits the hospital chain has plagued itself with for many years. Echoing the corporate gangsterism that has typified the U.S. economy in the last few years, Tenet was recently sued by the U.S. Justice Department for allegedly over billing Medicare to inflate its revenues from 1992-1998. The government said Tenet overcharged Medicare for certain procedures by using improper diagnosis codes for hospital stays. Also, federal authorities raided a Tenet owned hospital in Redding where doctors were knowingly performing unnecessary heart surgeries and engaging in other bill padding techniques.

A Tenet hospital in San Diego was also raided by authorities for doctors reportedly recruiting patients into the hospital. These allegations are only the beginning of a recently “restructured” corporation. In 1995, National Medical Enterprises changed its name to Tenet, hoping to erase the sordid history of scandal and fraud that shook the company a few years earlier. The name change dramatically increased bottom line profits and a successful turn around strategy was born thus setting off the trend of buying and selling hospitals around the nation. NME posted a $425 million loss in 1994 to a $302 million profit by 2000. Corporate CEOs and shareholders know the public has a short-term memory, unfortunately.

Claims of doctor deception and insurance fraud once again shed light on the company that chose its new name because officials said it represented integrity and shared values: Tenet Healthcare Corporation.
Headquartered in Santa Barbara, Tenet executives compensated by bottom line profits and shareholder revenues were taken by surprise as the small hospital in Marina del Rey fought back and survived its own near-death experience. Thanks again to the efforts of local citizens who realize that a hospital closure could mean many lives lost to the benefit of a CEO’s yearly bonus.

Once again, the powers of a committed citizenry derail the soulless corporate agenda of shareholder profit at the expense of human interest. As Margaret Mead once said “Never doubt that a group of committed citizens can change the world; indeed, it is the only thing that ever has.”

For more information on getting involved with Save our Marina Hospital visit the website at <www.somh.org>.

Posted: Sun - June 1, 2003 at 03:08 PM          


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