Tenet, Health Management Associates accused of paying kickbacks to a Georgia clinic

|About: Tenet Healthcare Corporation (THC)|By:, SA News Editor

Tenet Healthcare (THC -0.1%) and Health Management Associates (HMA +0.3%) are facing charges of paying kickbacks to a Georgia clinic in exchange for referrals.

The two hospital chains are being accused in a whistle-blower lawsuit brought by Ralph Williams, a former CFO of HMA, who says the clinic recruited pregnant, undocumented Hispanic women, who would be eligible for Medicaid benefits when they gave birth, and referred them to HMA and THC hospitals in exchange for kickbacks.

HCA recently reported its Q2 earnings rose 8.2%, as the hospital operator saw more patients and posted more revenue from each visit.