Federal agencies are now closely coordinating an investigation into Community Health Systems' billing practices, according to a Reuters report.
The Civil Division of the U.S. Department of Justice, the Office of the Inspector General for the Department of Health and Human Services and multiple federal prosecutors' offices are investigating allegations against CHS by Tenet Healthcare, which accused the hospital system of overbilling Medicare.
CHS shares were down 3.3 percent at $29.69 in premarket trading today, according to the report. Shares of Tenet, the third-largest U.S. hospital operator, were down 2 cents at $6.75 in premarket trading.
CHS, the country's number two hospital system, offered Tenet $6 per share in an all-cash bid last week, which Tenet later rejected. Tenet said the offer grossly undervalued the company.
Read the Reuters report on CHS and Tenet.
Read more about CHS and Tenet:
- Tenet Rejects Community Health's All-Cash Bid
- Community Health Issues Response to Tenet's Rejection
- CHS Files Motion to Dismiss "Baseless" Tenet Lawsuit
The Civil Division of the U.S. Department of Justice, the Office of the Inspector General for the Department of Health and Human Services and multiple federal prosecutors' offices are investigating allegations against CHS by Tenet Healthcare, which accused the hospital system of overbilling Medicare.
CHS shares were down 3.3 percent at $29.69 in premarket trading today, according to the report. Shares of Tenet, the third-largest U.S. hospital operator, were down 2 cents at $6.75 in premarket trading.
CHS, the country's number two hospital system, offered Tenet $6 per share in an all-cash bid last week, which Tenet later rejected. Tenet said the offer grossly undervalued the company.
Read the Reuters report on CHS and Tenet.
Read more about CHS and Tenet:
- Tenet Rejects Community Health's All-Cash Bid
- Community Health Issues Response to Tenet's Rejection
- CHS Files Motion to Dismiss "Baseless" Tenet Lawsuit