Community Health, in its own release, shot back that Tenet’s allegations are “completely without merit and we intend to vigorously defend ourselves against these unfounded and irresponsible claims.”
The lawsuit alleged CHS has been billing hospital stays that should have been observation-status as full inpatient stays. Tenet alleges CHS owes “well in excess of $1 billion” just on hospital stays billed to Medicare in 2006-2009. “Unwinding the strategy will materially reduce admissions, revenues, profits and cash flows going forward,” Tenet stated.
Community Health filed an unsolicited bid to purchase Tenet last November, and Tenet has been fighting off the bid ever since. The CHS release said of Tenet’s lawsuit that “these self-serving allegations are an attempt by Tenet’s management and board to continue their entrenchment strategy and to distract Tenet shareholders from CHS’s pending offer.”
Read Tenet’s release on its lawsuit (pdf).
Read Community Health’s release on the lawsuit.
Read a copy of the lawsuit (pdf).
Read more coverage of Community Health’s bid to buy Tenet:
– Timeline: Community Health’s Pursuit for Tenet
– CHS Offers $3.3B Bid for Tenet
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
