Tenet to pay $725M in settlement

Tenet Healthcare will pay $725 million to resolve outstanding charges that it improperly billed Medicare and violated other federal rules governing hospitals. As part of the settlement, the hospital chain will be required to sell hospitals in Philadelphia, New Orleans and Florida. The charges, which date back to 2002, involve allegations that the company gamed the Medicare outlier payment system to win undeserved payments from the government. The settlement follows last month's news of Tenet's agreement with federal prosecutors to dismiss federal racketeering charges.

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PLUS: Optimists are betting the settlement means that Tenet could make a big comeback. On Wednesday the company's stock was trading at $7.23, down from $52 a share when the outlier scandal was revealed in 2002. Article