Tuomey Ordered to Pay $70M While Waiting On Appeal

A federal district court in South Carolina has ordered Sumter, S.C.-based Tuomey Healthcare System to pay $70 million to delay payment on the $237 million judgment previously entered against it until an appeal of the case is completed.

On April 10, U.S. District Judge Margaret Seymour ordered Tuomey to pay a $30 million supersedeas bond, or defendant's appeal bond, within 10 days of the court order being entered. The judge also ordered the healthcare system to deposit $40 million in an escrow account until an appeal of the case is completed.

In May 2013, a jury found Tuomey violated Stark Law and the False Claims Act by filing $39 million in false claims to Medicare and compensating physicians for not referring patients to competing hospitals or physicians. As a result, a judgment was entered against Tuomey in the amount of $237 million.

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