Hospital Consolidation Trend Continues In Atlanta
The Henry Medical Center announced last week that it would enter partnership talks with Piedmont Healthcare.
Georgia Health News: Henry Medical Picks Piedmont As Partner
The hospital consolidation trend in metro Atlanta took another turn Friday with Henry Medical Center announcing it would enter partnership talks with Piedmont Healthcare. The Henry Medical announcement was highly anticipated, with Emory Healthcare and Piedmont the top suitors for the Stockbridge hospital (Miller, 4/15).
Meanwhile, Reuters reports on the continuing saga related to the Community Health's bid to take over Tenet, which has triggered allegations of improper Medicare and Medicaid claims.
Reuters: Community Health Gets US Subpoena In Claims Probe
Community Health Systems Inc was subpoenaed by the U.S. government in connection with an investigation of possible improper claims submitted to Medicare and Medicaid, days after rival Tenet Healthcare Corp accused it of bilking the government and insurers. The news sent shares of Community Health down about 14 percent after hours. The subpoena, from the U.S. Department of Health and Human Services and dated March 31, requests documents from all of the company's hospitals and appears to concern emergency department processes and procedures, the company said in a securities filing on Friday (Geller and Beasley, 4/15).
Minneapolis Star Tribune/Associated Press: Community Health Converts $3B Offer For Tenet Healthcare To Cash After Medicare Allegations
Hospital operator Community Health Systems Inc. is revising its $3 billion offer for rival Tenet Healthcare Corp. to an all-cash bid. The offer values Tenet at $6 per share. In December, Community Health Systems went public with a bid of $5 per share in cash and $1 per share in stock. At the time Community Health offered a premium of about 40 percent on the Dallas company's shares. Tenet's board has rejected the offer, and adopted the offer with a "poison pill" measure (4/18).