Tenet Will Continue Suit Against CHS

Dallas-based Tenet Healthcare Corp. has said it will not drop the lawsuit it filed against Community Health Systems alleging improper admission practices, according to a Memphis Business Journal report.

Tenet CEO Trevor Fetter told Reuters the hospital operator, which rejected a CHS takeover offer of $7.25 per share earlier this year, has "no intention of withdrawing our lawsuit," according to the report.

The statement came a day after Tenet announced net income of $55 million for the second quarter of 2011, more than double its $25 million income in the same quarter of 2010.

Tenet has accused Brentwood, Tenn.-based CHS of systematically overbilling Medicare and unnecessarily converting emergency department visits, or observation stays, into inpatient admissions, which see a substantial difference in Medicare payments. If treated as false claims, Tenet says CHS' conduct could result in liabilities in excess of $1 billion for 2006 to 2009 alone.

Read the Memphis Business Journal report on Tenet.

Related Articles on Tenet:

Timeline: Community Health's Pursuit for Tenet
Tenet Sues CHS: New Battle Lines in Healthcare Takeovers — Whistleblowing
CHS Makes "Best and Final Offer" For Tenet at $7.25 Per Share

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