Tenet Jumps on UnitedHealth Acute-Care Deal

Shares of Tenet Healthcare (THC) are up 6% in pre-market trading after the firm said Tuesday it signed a new two-year agreement with UnitedHealth (UNH) unit UnitedHealthcare, giving UnitedHealthcare members access to Tenet's acute-care hospitals. Seventeen Tenet hospitals -- six times the national average -- met UnitedHealthcare's quality standards in order to receive recognition from UnitedHealthcare's Premium Designation Program, it said. Each of which stands to earn "incremental financial returns" if it can achieve certain quality metrics established under the agreement. Center of Excellence designations are given to hospitals that meet or exceed UnitedHealthcare's criteria, based on major complication rates, mortality rates and patient safety processes. "This national agreement recognizes Tenet's achievements in clinical quality. Tenet is well positioned through our clinical quality program to excel as the pay-for-performance environment continues to gain momentum," Tenet's chief managed-care officer Clint Hailey said. Shares of UnitedHealth Group are up 0.5% in pre-market trading. UnitedHealth sports a $69 billion market cap to Tenet's $1.9 billion.

Sources: Press release, Dow Jones

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