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Court rules for Community in suit by Tenet

Reuters, March 22, 2012

Community Health Systems Inc, which failed in attempts to acquire rival hospital operator Tenet Healthcare Corp, prevailed in getting a lawsuit brought against it by Tenet thrown out. Judge Barbara Lynn of U.S. District Court for the Northern District of Texas dismissed the suit with prejudice on Wednesday, citing Tenet's lack of standing to bring the action. In an unusual move against a hostile suitor, Tenet sued Community Health, accusing it of admitting too many patients to its hospitals in order to inflate profits and overcharge Medicare.