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Tenet fires Detroit Medical Center CEO

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Part of Detroit Medical Center.

Tenet Healthcare Corp. has fired Joe Mullany   as CEO of Detroit Medical Center. Crain’s Detroit Business  cited his refusal to lay off more employees the past two years, his negotiation of a contract with Wayne State University’s medical school that purportedly paid physicians too much for administrative work, and that he spent more to fix problems with dirty surgical instruments than Tenet had wanted.

Now many worry that further cost-cutting may be imminent, including budgets for capital spending and maintenance at the Detroit-based hospital system, Michigan’s largest provider of Medicaid and indigent care.

Mr. Mullany is one of the first of several top executives to be cut in a national restructuring plan at Tenet, which involves reducing corporate overhead costs by, among other things, cutting the number of its markets to 10 or fewer from 13.

Tenet and DMC officials declined to comment on why Mr. Mullany has been replaced by Tony Tedeschi, M.D., an executive from Tenet’s Chicago market. Tenet also refused to talk about its regional-restructuring plans. Mr. Mullany also declined to comment on his ouster.

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