Health Care Provider to Pay $44 Million

June 7th, 2010 by Qui Tam

On Thursday, June 3, 2010, Senior U.S. District Judge Matthew J. Perry, Jr., ruled that Tuomey Healthcare System, based in Sumter, South Carolina, must pay $44,888,651 plus interest received from Medicare under physician contracts in violation of the Stark Law.  This ruling from Judge Perry follows the March 29 jury verdict where a federal jury found that the hospital violated the Stark Law, a physician self-referral law, through 18 part-time physician contracts for the hospital’s Outpatient Surgery Center.  However, the jurors concluded that the hospital had not violated the False Claims Act and, as a result, would not be required to pay fines and penalties totalling $227.5 million.  Judge Perry also determined that the government was entitled to a new trial regarding the False Claims Act findings.  Any additional money recovered by the government under the False Claims Act will be offset by the $44,888,651 that the government received as a result of the June 3 ruling.

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