Lawsuit accuses Wesley's parent company of securities violations

HATTIESBURG, MS (WDAM)-Two of the nation's major healthcare giants are at odds in what is being described as a hostile takeover by one of the providers.

Tenet Healthcare Corporation of Texas has filed suit in federal court in Dallas accusing Community Health Systems of Tennessee of violating federal securities law by engaging in improper admissions practices by systemically admitting patients in its hospitals despite no clinical need.

Tenet has rejected Community's 3.3 billion dollar takeover bid several times and has gone to court claiming Community overstated its profits by billing medicare for improper admissions of patients.

Community owns 139 hospitals in 29 states, including Hattiesburg's Wesley Medical Center.

According to the suit, CHS artificially increases inpatient admissions for the purpose of receiving higher and unwarranted payments from medicare and other sources.

In a news release, Community says the lawsuit is without merit and accuses Tenet of adopting a scorched earth defense without regard for the best interests of its shareholders.

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