Tenet Healthcare stock falls after Fuzzy Panda short report alleges Medicare fraud

June 11, 2025 11:43 PM AEST | By Investing

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Tenet Healthcare stock falls after Fuzzy Panda short report alleges Medicare fraud — Image source: Kalkine Media

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Investing.com -- Tenet Healthcare Corporation (NYSE:THC) shares dropped 3.8% following a scathing report by Fuzzy Panda Research alleging the hospital operator engaged in Medicare and Medicaid fraud.

The short-seller’s report claims Tenet could face fines between $675 million and $845 million based on analysis of Centers for Medicare&Medicaid Services data. According to Fuzzy Panda, Tenet received over $167 million in excess Medicare outlier payments that "drop directly to the bottom line" as "pure profit."

The report alleges Tenet accelerated "outlier gaming activities" immediately after the end of its five-year Corporate Integrity Agreement, which was part of a previous $900 million settlement for similar issues. Fuzzy Panda also claims Tenet’s revenue is likely overstated due to cost report irregularities compared to regional peers.

Among the allegations are claims that Tenet charged private jet costs to government programs, used undocumented immigrants’ newborns (dubbed "Million-Dollar Babies") to secure additional Medicaid reimbursement, and engaged in illegal upcoding practices.

Fuzzy Panda’s report also highlights Tenet’s history of regulatory issues, noting the company has paid over $2.5 billion in fines over the past 20 years. The short-seller concluded that Tenet’s corporate ethos remains "bend the rules and pay the fines later."

Tenet Healthcare has not yet responded to the allegations. The company operates 61 acute care and specialty hospitals and approximately 550 other healthcare facilities across the United States.

This article first appeared in Investing.com

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