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U.S. Owes Tenet $84M for Underpaid Medicare

DALLAS (CN) - Hospital operator Tenet Healthcare said Thursday that it settled its Medicare underpayment claims again the U.S. government for $84 million.

Dallas-based Tenet said it expects to receive the cash by the end of June as part of an industry-wide settlement. The company said the settlement corrects underpayments made by the Medicare inpatient prospective payment system for several years.

The settlement will purportedly increase Tenet earnings from continuing operations by $77 million. Tenet said it anticipated a favorable resolution of this and other settlements when it raised its earnings guidance in February, but conservatively placed them at between $25 million and $50 million. The company plans on updating its guidance when it announced first quarter earnings on May 8.

On Tuesday, Tenet agreed to pay the federal government $42.75 million to settle claims it overbilled Medicare for treatment it provided at its inpatient rehabilitation facilities.

Tenet operates 50 hospitals and more than 100 free-standing outpatient centers throughout the country.

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