Health Net Terminates Deals with Six Tenet Healthcare Hospitals in So Cal

Health Net, Inc.

today announced that its subsidiaries exercised their contractual option to terminate agreements with all six of Tenet Healthcare's

Southern California hospitals. The terminations were effective midnight on Dec. 21, 2012. The facilities are: Desert Regional Medical Center, Fountain Valley Hospital and Medical Center, John F. Kennedy Memorial Hospital, Lakewood Regional Medical Center, Los Alamitos Medical Center and Placentia Linda Hospital. Health Net and Tenet Healthcare were nearing the end of a three-year contract. Health Net believes Tenet's reimbursement should be in line with the medical consumer price index, which currently averages more than 3 percent, and that reimbursement for state- and federally funded programs like Medi-Cal needs to be consistent with the funding for those programs. In recent discussions for a new contract, Health Net and Tenet have been unsuccessful in reaching agreement on reimbursement amounts.