Tenet shutters 4 regional management offices to cut costs

Tenet Healthcare has closed four regional management offices as the Dallas-based hospital operator continues efforts to improve its financial picture, according to Crain's Detroit Business.

Tenet is getting rid of the regional management layer to improve its hospital operations business, Dan Waldmann, senior vice president of public affairs at Tenet, said in a statement to Becker's Hospital Review. "These changes will create a more nimble and agile organization, and allow us to better support our hospitals in delivering care to patients and providing health services to communities," he said.

The elimination of the regional layer has altered the reporting chain for some Tenet hospitals. For example, Detroit Medical Center's CEO now reports directly to Tenet President of Hospital Operations Eric Evans, according to Crain's Detroit Business. It is unclear how many positions were affected by the closure of the regional offices.

The move comes as Tenet is exploring a number of strategic options, including the sale of assets, divisions or the entire company, according to The Wall Street Journal. The 77-hospital chain ended the second quarter of this year with a net loss of $56 million, compared to a net loss of $44 million in the same period of the year prior. Tenet will release its earnings for the third quarter in November.

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