After shares of Tenet Healthcare dropped 10 percent in Monday trading, Leerink Swann analyst Jason Gurda just came out and said it: The Dallas-based hospital chain's directors should have taken the deal offered them by Community Health Systems, which was worth almost 40 percent than their stock is now worth. But could you imagine the firestorm that would have swirled around CHS had its acquisition closed just before Tenet's payer mix deteriorated big time?
Tenet Healthcare CEO Trevor Fetter was feisty Tuesday when asked about the chances of his team dropping its admissions-related lawsuit against Community Health Systems. "We have no intention of withdrawing," he said, suggesting instead that CHS could at some point offer a satisfactory settlement.
According to a proposed scheduling order filed in the Tenet v. Community Health Systems case, the parties' attorneys have agreed to give CHS until June 30 to file any motion to dismiss Tenet's amended complaint. After that, Tenet would have another 30 days to respond to that motion. If the court wants a hearing on a motion to dismiss, it will be held on or after Sept. 15.
Tenet filed its amended suit on May 16. The Texas company is now seeking damages for the costs it incurred while investigating and suing CHS.