Trading of Tenet Healthcare Corp. stock was halted today after it plunged 22% to $32 per share from $38.97 per share on news of a federal raid at Tenet's 188-bed Redding (Calif.) Medical Center. Search warrants were executed on the hospital and the offices of its director of cardiology and director of cardiac surgery. The raid was carried out by some 40 agents and inspectors from the FBI, HHS, the IRS and the U.S. attorney's office in Sacramento. According to affidavits filed in U.S. District Court in Sacramento, investigators were seeking evidence of false billings and unnecessary angioplasties, coronary bypasses and heart catheterizations. Cardiology Director Chae Hyun Moon, M.D., 55, and Fidel Realyvasquez Jr., M.D., 53, chairman of the cardiac surgery program, have not been charged in the case. FBI Special Agent Michael Skeen said he is conducting the investigation of allegations that the two men conspired to commit healthcare fraud, committed healthcare fraud and made false statements. The physicians could not be reached for comment. For more on this story go to www.modernhealthcare.com. -- by Mark Taylor
Tenet Calif. hospital subject of government raid
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