Tuomey agrees to pay $72 million fine, merge with Palmetto
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Tuomey Healthcare System has settled a decade long lawsuit with the U.S. Department of Justice, agreeing to pay a $72.4 million fine once a merger has been completed with Palmetto Health on Jan. 1, according to an announcement released Friday.
The lawsuit stems from an illegal kickback scheme the hospital had with doctors dating back before the suit was filed in 2005.
The Department of Justice had ordered Tuomey to pay a $237.4 million fine. Tuomey has already put $40 million in an escrow account with the court. Representatives of Tuomey have said paying more than $70 million would bankrupt the hospital, which would not benefit anyone.
Look for more information in Saturday’s Item.