Community Health Systems receives SEC subpoena

The Securities and Exchange Commission issued a subpoena to Community Health Systems for documents related to the various probes of its emergency room practices and observation visits, according to a company securities filing.

The Franklin, Tenn., company received the subpoena on May 13. The SEC also seeks documents that the company relied upon in making its responses to the securities lawsuit filed against it by Tenet Healthcare Corp., Dallas, according to the filing. Tenet filed an amended complaint Monday in the case in U.S. District Court in Dallas, as Community's filing noted. The company continues to believe that the case is without merit, according to the filing.

The filing also disclosed a new subpoena from the Houston office of HHS' inspector general's office. The subpoena seeks 71 patient records from Community's 177-bed Heritage Medical Center, Shelbyville, Tenn., for the assistant U.S. attorney who is handling the previously disclosed investigation of Community's 308-bed Laredo (Texas) Medical Center. Community does not know of any connection between the two hospitals other than their ownership by the company, according to the filing.

The filing also noted that two shareholder lawsuits have been filed against the company in U.S. District Court in Nashville, and both are seeking class-action status.