Healthcare News & Insights

Hospital fines could top $275m for Stark, False Claims violations

One hospital system will have to pay at least $45 million — and potentially up to $275 million — in fines for allegedly making illegal agreements with doctors.

Tuomey Healthcare System, of Sumter, South Carolina was ordered to pay the $45 million fine (not including interest) for paying doctors for referring patients from their own practices to Tuomey’s outpatient surgery center in violation of the Stark Law.

The judge in the case has also ordered a retrial of the False Claims Act portion of the trial, because he admitted he was wrong to exclude some testimony from the jury hearing the case. Those charges stem from allegations that Tuomey illegally submitted self-referrals for payment.

If found guilty of the FCA violations, Tuomey faces more penalties in the area of $230 million.

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