Monday, April 11, 2011

Tenet Healthcare (THC) Sues (CYH) Over Medicaid

Shares of Tenet Healthcare (NYSE:THC) and Community Health Systems are plummeting as Tenet has filed a lawsuit against Community Health Systems (NYSE:CYH) over a Medicaid allegation.

According Tenet Healthcare's complaint, Community Health Systems made its decisions to accept Medicaid patients solely on financial gain and not on what was physically wrong with a patient.

Tenet claims as a result Medicaid patients were overbilled from 2006 to 2009 for close to $377 million.

Tenet was trading at $6.41, falling $1.14, or 15.03 percent, as of 12:12 PM EDT. Community Health was trading at $26.82, down $13.48, or 33.45 percent.

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