Tenet Healthcare will seek damages for the cost of resisting a now-terminated takeover bid from Community Health Systems, according to a Bloomberg report.
CHS withdrew its $7.3 billion offer to buy Tenet on May 10 after Tenet rejected the bid three times. CHS also withdrew its 10 nominees for Tenet's board. Now, a lawyer for Tenet says the Dallas-based system is still dealing with "the costs and economic impacts associated with the efforts [CHS] made," according to the report.
Tenet sued CHS last month, alleging the company systematically overbilled Medicare by admitting patients for financial rather than medical purposes.
This lawsuit is separate and seeking damages for resisting CHS's takeover. The amount in damages was not specified.
A CHS lawyer said the system will oppose any claims against CHS, according to the report.
Read the Bloomberg report on Tenet and Community Health Systems.
Related Articles on Tenet and CHS:
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
CHS withdrew its $7.3 billion offer to buy Tenet on May 10 after Tenet rejected the bid three times. CHS also withdrew its 10 nominees for Tenet's board. Now, a lawyer for Tenet says the Dallas-based system is still dealing with "the costs and economic impacts associated with the efforts [CHS] made," according to the report.
Tenet sued CHS last month, alleging the company systematically overbilled Medicare by admitting patients for financial rather than medical purposes.
This lawsuit is separate and seeking damages for resisting CHS's takeover. The amount in damages was not specified.
A CHS lawyer said the system will oppose any claims against CHS, according to the report.
Read the Bloomberg report on Tenet and Community Health Systems.
Related Articles on Tenet and CHS:
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