CHS increases offer for Dallas-based health company

Community Health Systems on Monday increased its offer to more than $4 billion in an effort to take over Dallas-based Tenet Healthcare Corp.

CHS had previously offered $3.3 billion in December, but Tenet refused the offer.

The offer now represents a value of $7.25 per share, up from $6.

CHS and Tenet are currently involved in a lawsuit, in which Tenet claims CHS improperly billed Medicare by admitting patients who should have been treated in observation.

CHS said it would withdraw its offer if Tenet does not engage in “good-faith discussions” by May 9.

Community Health Systems acquired Northside Medical Center in Youngstown, Trumbull Memorial Hospital in Warren and Hillside Rehabilitation Hospital in Howland in October.