Tenet, Health Management Accused of Paying Kickbacks

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Tenet Healthcare Corp., the third-biggest publicly traded U.S. hospital chain, and Health Management Associates Inc. were accused in a lawsuit of paying kickbacks to a Georgia clinic in exchange for referrals.

The hospital chains were sued under the Federal False Claims Act in a whistle-blower case brought by Ralph Williams, a former chief financial officer of Health Management Associates, on behalf of the U.S. and Georgia. The lawsuit, filed in federal court in Athens, Georgia, was ordered unsealed yesterday.