Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Community Health Seeks Dismissal of ‘Baseless’ Tenet Suit

Community Health Systems Inc., accused in a lawsuit by Tenet Healthcare Corp. of overcharging Medicare, moved to dismiss what it called a “baseless” legal action.

Community Health, which has an unsolicited buyout offer for Tenet, said in court papers that the claims must be dismissed in part because Community Health modified its acquisition proposal to an all-cash offer. Community Health filed its motion today in federal court in Dallas.

Tenet, a Dallas-based operator of hospitals, sued Community Health on April 11, charging that it would have difficulty raising money for a buyout because its methods for admitting patients to hospitals under Medicare could subject it to “liability and damages of well over $1 billion.”

“In a misguided effort to score points in this contest for corporate control, Tenet has filed this lawsuit attacking the ethics and professional judgment of 15,000 attending physicians, who make the decision whether to admit patients at CHS-affiliated hospitals,” Community Health said in the filing.

Community Health offered $6 a share, or $7.3 billion, to acquire all the stock of Tenet. Tenet rejected the offer in December, saying it wasn’t “remotely fair.”

“This changes nothing,” Rick Black, a spokesman for Tenet, said in a telephone interview. “We intend to vigorously prosecute our claims.”

Tenet owns 49 hospitals. Community Health owns, operates or leases 130 hospitals.

Tenet rose 15 cents, or 2.3 percent, to $6.64 in New York Stock Exchange composite trading at 4:15 p.m. Community Health, based in Franklin, Tennessee, climbed 70 cents, or 2.3 percent, to $31.20.

The case is Tenet Healthcare Corp. v. Community Health Systems Inc., 11-00732, U.S. District Court, Northern District of Texas (Dallas).

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.