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Health Net terminates 6 Tenet Hospital contracts

December 28, 2012

Health Net Inc. announced that its subsidiaries have terminated agreements with all six of Tenet Healthcare Corp.'s Southern California hospitals after the two companies failed to renegotiate reimbursement rates. The Woodland Hills insurer said it thinks Tenet's reimbursement should be in line with the medical consumer price index, which currently averages more than 3 percent and that reimbursement for government programs like Medi-Cal need to be consistent with that inflation rate.

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