Tenet Sues Community Health Systems for Overcharging Medicare
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Tenet Healthcare Corp. accused Community Health Systems Inc. of overcharging Medicare at least $280 million in a lawsuit aimed at thwarting its rival’s unsolicited bid.
Community Health shares plunged 36 percent, the most since the Franklin, Tennessee-based hospital company went public in June 2000. The company may have trouble raising the cash for its proposed $7.3 billion takeover and could be “subject to liability and damages of well over $1 billion” for its Medicare admission practices from 2006 and 2009, Dallas-based Tenet said in the suit.