Tenet Seeks Suits of Individual Hospitals
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Tenet Healthcare Corp. said the Justice Department should be forced to sue member hospitals individually on allegations that they submitted phony Medicare claims.
Tenet asked a federal judge in Los Angeles to exclude the company as a defendant in a suit seeking $323 million in damages. That would give prosecutors the more difficult task of proving fraud against individual hospitals in the Santa Barbara-based chain.
The government’s suit, filed in January, accused the company of improperly classifying illnesses to inflate Medicare reimbursement claims for six years in the 1990s.
Shares of Tenet rose 21 cents to $16.21 on the NYSE.
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