Tenet CEO leaving earlier than expected

Trevor Fetter, CEO and chairman on Tenet Healthcare, was scheduled to leaving those roles by March 15, 2018. Instead, he resigned effective Oct. 23, leaving executive chairman Ronald Rittenmeyer in charge as interim CEO.

“I have confidence in Ron’s leadership and Tenet’s management team, so now is the right time for me to step down as CEO,” Fetter said in a statement. “I am grateful for the hard work and dedication of all of Tenet’s employees in building this great company, and it has been an honor to work alongside them.”

Fetter had been with Tenet since 1995, working his way up to president in 2002, CEO in 2003 and chairman in 2015. His departure had first been announced after several weeks of financial turmoil in August, when the company posted a $56 million loss in the second quarter and cut its earnings forecast. The largest shareholder in the company, Glenview Capital Management, then had its two representatives on the board quit, setting up a potential proxy fight.

Tenet responded with a “shareholder rights plan” which would allow other shareholders to buy shares at a 50 percent discount if any investor acquired 4.9 percent or more of the company, setting up a “poison pill” to scare off any proxy battle. Additionally, the company announced it would sell eight hospitals in the U.S. and nine in the U.K., potentially yielding $1 billion for the company.

Already announced sales have included a $170 million deal with Paladian Healthcare for two Philadelphia hospitals, off-loading MacNeal Hospital in Berwyn, Illinois, and seeking buyers for three other hospitals in the Chicago area.

A sale of the company or a breakup along its three main business lines remain possibilities. The Wall Street Journal reported in September Tenet had been meeting with investment bank to discuss its options.