Tenet Changes Counsel as Senate Closes In

Sulzbach recently gave up her other position as chief compliance officer before announcing Friday that she would be leaving the company entirely.

"It appears that somewhere along the way, Tenet grasped the inherent conflict in having Ms. Sulzbach wearing two hats as general counsel and chief compliance officer," Grassley wrote. "However ... skeptics may differ with Tenet's proclamation about naming a new 'independent' chief compliance officer."

Jim Moriarty, a Houston attorney who's fighting his second big war against the company, celebrated Tenet's decision to remove Sulzbach on the heels of Grassley's complaints.

"That's the first positive thing I've seen that company do in years," said Moriarty, who scored a big settlement against Tenet after its last big scandal and now represents hundreds of clients suing Redding. "They've got to get rid of her before they can start cleaning up shop."

Tenet shares barely budged, slipping 3 cents to $14.79, on the news. But Tenet -- and even Sulzbach herself -- acknowledged Friday that the personnel change was necessary.

"While we have made progress in recovering from our many challenges, I believe that I have become a focal point for some Tenet critics," Sulzbach said in a prepared release. "Thus, I realize it is in the best interest of the company for me to leave at this time."

The New Look

Although Fetter described Sulzbach as a "consummate professional" and applauded her efforts at the company, he said Tenet would "benefit from a fresh perspective on legal matters going forward." The company, known for promoting insiders, has pledged to seek fresh blood for the challenging role.

Meanwhile, Tenet used a separate legal shakeup -- ahead of Sulzbach's exit -- as a reason for missing the recent Senate deadline. The company recently hired a new set of attorneys to address the Senate probe. Still, the Senate limited its initial request to just two sets of documents and has since made clear that it expects future deadlines to be met.