DALLAS (AP) - Hospital operator Tenet Healthcare Corp. said Thursday that it will receive $84 million as part of an industry-wide Medicare settlement with the federal government.
Dallas-based Tenet said the settlement, which it expects to receive by the end of June, will boost its earnings from continuing operations by $77 million. The settlement corrects Medicare-related underpayments over a number of prior years, the company said.
Tenet said it expected some kind of favorable settlement when it raised its 2012 adjusted earnings before interest, taxes, depreciation and amortization guidance in February, but at that time only projected a boost of between $25 million and $50 million.
Tenet said it will update the guidance when it releases its first-quarter results on May 8.
Earlier this week, Tenet said it has agreed to pay $42.8 million to resolve allegations it overbilled Medicare for the treatment of patients who needed intense inpatient rehabilitation.
Tenet shares rose 21 cents, or 4.1 percent, to $5.29 in morning trading.