Robbins Arroyo LLP: Tenet Healthcare Corporation (THC) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Tenet Healthcare Corporation (NYSE: THC) in the Superior Court of the State of Georgia for Fulton County. The complaint is brought on behalf of all persons who were patients at Hispanic Medical Management, Inc., d/b/a Clinica De La Mama (“Clinica”) and were referred to Tenet hospitals for labor and delivery services, for fraud, negligent misrepresentation, and alleged violations of the Anti-Kickback Statute. Tenet, together with its subsidiaries, primarily operates acute care hospitals and related healthcare facilities.
Tenet Accused of Participating in Illegal Scheme to Gain Referrals
According to the complaint, Tenet entered into written contracts with various entities, including Clinica and other affiliated Clinica entities, with the purpose of receiving patient referrals. According to the agreement, Tenet would pay the owners and operators of Clinica for referring its Medicaid patients to Tenet hospitals for delivery and arranging for services to be provided to Clinica patients and their newborns at Tenet hospitals. The complaint alleges that Tenet ultimately paid Clinica $12 million in exchange for these referrals. In the process of implementing its scheme, Tenet submitted false certifications to various state Medicaid programs, erroneously stating that Tenet was in compliance with applicable federal and state laws. Tenet’s claims to the state Medicaid programs allegedly resulted in its receipt of more than $125 million in Georgia and South Carolina Medicaid funds and more than $20 million in Medicare Disproportionate Share program funds.
Tenet’s scheme allegedly resulted in Clinica patients being forced to visit Tenet hospitals for labor and delivery services that were readily available at other hospital facilities. The company’s unlawful agreement mostly affected undocumented Hispanic women who would be eligible for emergency Medicaid services when they gave birth. The victims put their health and safety, and that of their newborns, at risk by traveling long distances from their homes to deliver at Tenet hospitals, and also incurred unnecessary charges and expenses as a result. Notably, Tenet and several of its entities recently entered into a settlement for $513 million to resolve a criminal investigation and civil litigation about the kickback scandal.
Tenet Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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