Tenet’s Fla. Hospitals Settle Billing Dispute

Tenet Healthcare Corp., the second-biggest U.S. hospital chain, said five of its Florida hospitals agreed to pay $4.2 million to resolve government claims that they overbilled Medicare.

The settlement concerns billing from 1993 to 1997, Tenet said. The hospitals were accused of using the wrong diagnosis codes to get more money from Medicare, the government insurance program for the elderly and disabled. Santa Barbara-based Tenet denied any wrongdoing.

Last month, the government sued the company, accusing it of submitting false Medicare claims for its other hospitals, after settlement negotiations failed.

Tenet shares rose 50 cents to $18.40 on the NYSE.