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Tenet pushes back against Community Health with lawsuit
Los Angeles Business Journal

Tenet Healthcare has filed a complaint against Franklin-based Community Health Systems in federal court in Dallas, alleging that CHS “has been systematically overbilling Medicare,” according to a statement from Tenet. CHS (NYSE: CYH) has long sought to acquire Dallas-based Tenet (NYSE: THC), which has twice turned down buyout offers of $7.4 billion. “We filed this complaint because our due diligence revealed that Community Health has been systematically overbilling Medicare and likely other payers by causing patients to be admitted to its hospitals when industry practice is to treat them in outpatient observation status,” Tenet said in a statement.