• Federal Court Upholds $237 Million Sanction Against Tuomey Healthcare
  • July 15, 2015 | Authors: Laurel E. Baum; Jennifer R. Bolster; Raymond R. D'Agostino; Catherine A. Diviney; Meghan S. Gaffey
  • Law Firm: Hancock Estabrook, LLP - Syracuse Office
  • On July 2, 2015, the Federal Court of Appeals for the Fourth Circuit affirmed a lower court’s decision that Tuomey Healthcare violated the Stark law and the Federal False Claims Act, paving the way for the government to enforce the $237 million in court-awarded damages and penalties against the struggling, rural, not-for-profit hospital system. This is a qui tam case originated by Dr. Michael Drakeford, who was one of 20 physicians to whom Tuomey offered the compensation packages that are at the heart of this action.