Community Health discloses further federal scrutiny

Community Health Systems (CHS) has disclosed in securities filings that the U.S. Department of Justice is investigating three of its hospitals on charges that the New Mexico facilities caused the state to submit false federal claims. The DoJ is attempting to determine whether the facilities submitted inappropriate claims with the state's program for reimbursing hospitals for indigent care, CHS says. The current actions by the DoJ expand on an ongoing civil investigation, touching on CHS hospitals in Arkansas and South Carolina, which first kicked off in February 2006. 

CHS, which acquired Triad Hospitals in July for $6.97 billion, also reported net income of $10.5 million on revenue of $2.35 billion, up from $8.2 million net income on revenue of $1.12 billion in the same quarter last year.

To find out more about CHS's operations:
- read this Modern Healthcare piece

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