Corporate Compliance

Government joins fraud suit against SC hospital

Compliance Monitor, March 5, 2008

The federal government has joined a South Carolina physician's lawsuit against Tuomey Regional Medical Center, according to an article in The (Columbia, SC) State.

The suit alleges that from January 2005 to September 2007, Tuomey "devised a scheme by which it submitted and caused others to submit false and fraudulent claims for payment to Medicare and Medicaid ...," according to the article. Tuomey allegedly drove up healthcare costs and made the government reimburse the facility more than it legally deserved.

Last Wednesday, U.S. District Court Judge Matthew Perry refused to dismiss the case, clearing the way for attorneys to begin pre-trial work. Tuomey agreed last Wednesday to file a formal answer to the charges by March 28. No trial date has been set.

If a jury rules against the medical center, it could face penalties of millions of dollars in civil fines.

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