The Health Care Governance Implications Of Tuomey

Law360, New York (July 16, 2015, 1:44 PM EDT) -- The Fourth Circuit's decision in Drakeford v. Tuomey Healthcare System Inc. has broad health system implications, not only for the technical interpretation of the Stark Law and False Claims Act, but also for a board's fiduciary obligation to provide oversight over corporate compliance.

In its ruling, the Fourth Circuit affirmed the lower court's decision to grant a second trial in a whistleblower case brought against Tuomey Healthcare System for allegedly violating the FCA, in which the second jury found Tuomey guilty of violating the FCA and Stark Law. In so doing, the court upheld a $237 million FCA jury verdict rendered in...

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