4th Circ. Upholds $237M FCA Verdict Against SC Hospital

By Jessica Corso (July 2, 2015, 6:06 PM EDT) -- A struggling not-for-profit hospital in South Carolina can't escape a $237 million jury verdict following a Fourth Circuit ruling Thursday that a district judge was right to order a new trial on a whistleblower's False Claims Act suit alleging violations of a controversial anti-kickback statute.

A three judge panel held in a published opinion that a new trial was warranted to allow the U.S. government to present evidence that Tuomey Healthcare System Inc. violated the FCA by allegedly entering into anti-competitive contracts with doctors performing outpatient procedures at its hospital.

A jury had initially released Tuomey from the FCA claims while...

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