A three-judge panel from the Fourth Circuit Court of Appeals has reversed a $45 million ruling against Tuomey Healthcare System in Sumter, S.C., over alleged violations of Stark Law.
The appeal stems from April 2010, when jurors for the District Court of South Carolina found the system guilty of violating the Stark Act from through employment agreements with physicians for its Outpatient Surgery Center. The jurors found the system not guilty of alleged subsequent false claims. In June 2010, a district judge set aside the jury's verdict on the false claims and granted the government a new trial for just those allegations due to a mistake he made in excluding certain testimony. At the same time, the judge assessed the system $45 million plus an additional $4 million in pre-trial interest as equitable claims for the Stark violation.
Toumey appealed the decision, arguing the judge's decision to set aside the jury's FCA verdict in its entirety, "including whether Tuomey had violated the Stark Law," prohibited the use of the jury's determination of the Stark claims to determine the equitable claims.
According to the appellate court's determination:
Federal Judge Rules Bradford Regional Violated Stark Act
Federal Court Denies South Carolina's Tuomey Hospital's Appeal in Medicare Fraud Case
The appeal stems from April 2010, when jurors for the District Court of South Carolina found the system guilty of violating the Stark Act from through employment agreements with physicians for its Outpatient Surgery Center. The jurors found the system not guilty of alleged subsequent false claims. In June 2010, a district judge set aside the jury's verdict on the false claims and granted the government a new trial for just those allegations due to a mistake he made in excluding certain testimony. At the same time, the judge assessed the system $45 million plus an additional $4 million in pre-trial interest as equitable claims for the Stark violation.
Toumey appealed the decision, arguing the judge's decision to set aside the jury's FCA verdict in its entirety, "including whether Tuomey had violated the Stark Law," prohibited the use of the jury's determination of the Stark claims to determine the equitable claims.
According to the appellate court's determination:
"[Because of the court set aside the jury's FCA determination in its entirety,' the court jury had yet to determine the common issue necessary to resolution of both the FCA claim and the equitable claims, i.e., whether Tuomey violated the Stark Law. In granting judgment to the United States on the equitable claims, the district court impermissibly resolved that common issue before a jury had adjudicated it. It thereby deprived Tuomey of its right to a jury trial.
More Articles on False Claims:
South Carolina's Tuomey Hospital Seeks to Stop Retrial of Alleged False Claims ViolationsFederal Judge Rules Bradford Regional Violated Stark Act
Federal Court Denies South Carolina's Tuomey Hospital's Appeal in Medicare Fraud Case