Tenet Selling Redding Hospital

"Plaintiff, as CEO of DMC, is directly and ultimately responsible for ensuring that quality-assurance and peer-review systems are in place at DMC, as well as ensuring that DMC continues to meet the highest medical and ethical standards of care," the lawsuit states. "Defendants, and each of them, acted despicably, willfully and in reckless disregard of the damage to the reputation of the plaintiff, as well as that of DMC, its physicians, nurses, employees and all other affected persons and entities."

Blue Cross abandoned plans to terminate its contract with DMC after Tenet accused the insurer -- which still owes the company $50 million in overdue bills -- of using outdated standards and a biased sample to skew the results of its study. Blue Cross stood by the results even after ending its feud with the hospital chain.

Nationwide

But Tenet faces problems outside its home state of California as well. The company has also been flooded with patient lawsuits in its major market of Florida. There, more than 100 former patients and survivors have accused Tenet-owned Palm Beach Gardens Medical Center of cost-cutting measures that led to unsanitary conditions triggering serious -- and sometimes fatal -- postoperative infections.

Last month, the Philadelphia Daily News reported, even a Philadelphia city official joined labor unions in striking out against the hospital. Nurses employed by Tenet's Medical College of Pennsylvania Hospital walked out a month ago after the hospital refused to stop making them work up to 16 hours at a time when they were already fatigued.

"Those bastards!" the newspaper quoted Controller Jonathan Saidel as saying. "Those pigs! I'll go wherever nurses need me, any time."

Saidel credits local nurses with delivering extended, life-saving care to his newborn daughter two decades ago. His support, however, has failed to resolve the current dispute. Just today, local news radio station KYW reported that the Philadelphia hospital is now on the verge of laying off 200 employees -- outside the nursing staff -- because the strike has essentially cut the hospital's patient count in half.