Tenet Settles Medicare Billing Probe for $900 million

Fair warning to those out there trying to bilk Medicare: Medicare bites back.

While Tenet Healthcare is spinning it as a deal ? and they get to do that ? really, they were fined $900 million dollars by the federal government for deceiving Medicare, the U.S.?s health insurance program for the elderly, into extraordinarily large reimbursements. Apparently the ?stealing candy from babies? market was already cornered. Reuters is covering the story.

While $900 million?s a cool chunk of change, it?s not as bad as it could have been. Analysts predicted that Tenet would have to pay well over $1 billion to settle the charges.

Though the amount is less, Tenet is still left scrambling to repair relationships damaged by the fraud. ?Tenet now must face the challenge of rebuilding its relationships with physicians, payers, and patients who had avoided the company’s hospitals with the government overhang outstanding” said Rob Mains, an analyst at Ryan Beck, who had predicted a $1.5 billion settlement.

Oh ? and then there?s the matter with the SEC. Seems Tenet wasn?t quite on the up and up so much with its financial outlook. The company continues to work with the SEC toward resolving all issues related to the adequacy of its financial disclosures regarding Medicare payments under managed care contracts, it has said.

You can read the full story at Tenet settles Justice Dept probe for $900 mln.