TENET MAKES CHANGES NEW LEADERSHIP FACES PROBE, NURSES', INVESTORS' CRITICISM.

Byline: Evan Pondel Staff Writer

Tenet Healthcare Corp. named several new executives this week as the beleaguered hospital chain continues to face federal investigations and a flurry of criticism from nurses and investors.

Edward Kangas, Tenet's new nonexecutive chairman, publicly expressed the need for change at the corporate level during the company's annual shareholders meeting Wednesday at the Skirball Cultural Center.

``We have a lot of work to do,'' said Kangas, less than a day after Tenet named the former chairman and chief executive of Deloitte Touche Tohmatsu as Jeffrey Barbakow's successor.

Trevor Fetter, Tenet's acting president and chief executive officer, followed Kangas' remarks, saying ``it's been a painful time to be a shareholder of Tenet. There is a lot of healing to occur ... and we're making steady progress.''

To propel the Santa Barbara-based company, Tenet appointed Dr. Jennifer Daley to the newly created position of senior vice president, clinical quality. The company also named Lauren Arnold as vice president, nursing.

Kangas and Fetter were scheduled to field questions after the meeting, but a spokesman said the panel was canceled at the last minute without explanation.

The shareholders meeting was attended by nearly 200 people, with several seats in the Skirball auditorium occupied by representatives of the California Nurses Association.

``All we hear about are problems involving value at Tenet, that the company has to cut back on things, and we have to deal with these issues. But what about value? Who does the company value? Do they value me less than Kaiser does?'' asked Elida Huerta, a resident nurse at Tenet's Doctors Medical Center San Pablo. ``Who is going to help? How are you going to attract nurses?''

Arnold said she was unable to comment about the current nursing situation at the hospital chain.

Huerta was joined by several other CNA members who rallied in front of the cultural center before the meeting began. Many of the demonstrators were wearing black kerchiefs around their mouths, chanting, ``We will not be silenced.''

But it was mostly investors who stressed their concern. Jake Bennett, a financial analyst and Tenet investor who represents about 10,000 shares, said he would like to see a new chief executive officer installed from outside the company. Fetter, acting chief executive, is among the candidates posturing for that roll.

``I'd also like to see another company come in and acquire Tenet,'' he said. ``Management has led shareholders over a cliff.''

The CNA is asking Tenet to sit down and broker a deal with the union that represents 68 percent of the hospital chain's registered nurses in California. David Johnson, the CNA's Southern California director, characterized the deal Tenet cut with two other unions in May as ``foolish.''

Tenet Healthcare Corp. has agreed to pay up to 29 percent in wage increases over a four-year period if a nurse decides to join the Service Employees International Union or the American Federation of State, County and Municipal Employees.

Tenet shares advanced a penny to close at $12.21 Wednesday on the New York Stock Exchange. Shares were trading at $41.66 a year ago.

Evan Pondel, [phone]

evan.pondel(at)dailynews.com

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Photo:

(color) Ofra Estes, left, a registered nurse at Doctors Medical Center in San Pablo, talks with Stephen Newman, CEO of Tenet California, after the shareholders meeting Wednesday.

Charlotte Schmid-Maybach/Staff Photographer