CHS Opens Another Defense of Medicare Admissions

John Commins, for HealthLeaders Media , May 2, 2011

Smith's Friday letter to shareholders was the latest twist in CHS's bitter hostile takeover bid for Tenet. Last Thursday, CHS issued a 109-page rebuttal of allegations raised in the Tenet suit. "We believe that the analysis prepared by Tenet Corp. contains contrived statistics that lead to faulty and irresponsible conclusions," Smith said in a conference call with the media and financial analysts.

"The analysis and allegations contain unreliable and inaccurate statements and represent a direct attack on the ethics and judgment of our 16,000 physicians and 85,000 employees. At the end of the day the ultimate decision to admit a patient into a hospital is based on a physician's judgment and medical necessity," Smith said. "Be assured we will defend our reputation. We will dedicate whatever resources are required to reach an ultimate resolution to these matters. And we will work tirelessly to restore any erosion of confidence or trust that may have been caused by these accusations." 

Tenet officials said last week they were not impressed by CHS' rebuttal. "Nothing we heard (Thursday) from Community Health diminishes our confidence in our analysis or allegations. We plan to vigorously pursue our claims in court," Tenet spokesman Rick Black said in a media release.

John Commins is a senior editor with HealthLeaders Media.

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