News-At-A-Glance: Tuomey Healthcare System Files Stay

Tuomey Healthcare System (Sumter, S.C.) has filed a motion for stay of a $70 million payment in order to prevent bankruptcy, according to an April 9 order in U.S. District Court for the District of South Carolina court documents. Tuomey was found in violation of physician self-referrals laws (Stark) and the False Claims Act on Sept. 30, 2013, and ordered to pay $237 million. Tuomey told the court it could not pay that fine and still continue operations. Tuomey appealed, but while waiting for the appeal, the government filed additional responses and motions that effectively required Tuomey to pay $70 million. The court ruled that the motion for stay is granted but Tuomey must obtain a supersedeas bond or equivalent in the amount of $30 million within 10 days of the ruling. Tuomey and the government will also enter into an escrow agreement in the amount of $40 million. It is possible that Tuomey may not survive its Stark violation case and it may yet be forced into bankruptcy.