Judge Orders South Carolina’s Tuomey Hospital to Pay $49.4M for Stark Act Violations

A federal judge has signed an order stating Tuomey Hospital in Sumter, S.C., must pay the U.S. government more than $49.4 million for violating the Stark Act, according to a report by the Sumter Item.

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The order makes official the roughly $44.89 million fee ordered by a judge following a jury ruling that the hospital violated Stark law. Additionally, the order includes more than $4 million in “prejudgment interest” and calls for an assessment of $5,122.50 in additional interest per day after April 15 until full restitution is made, according to the report.

Federal prosecutors alleged that beginning in 2004 the hospital violated federal healthcare law by offering part-time and other employment contracts to physicians that exceeded fair market value and were used as vehicles to reward physicians for referrals.

Read the Sumter Item report on Tuomey Hospital.

Read more coverage on Tuomey Hospital.

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