Publication
Health Law Checkup – April 2012
Fourth Circuit Discusses Stark Issues in Remand of Tuomey $45 Million Stark Verdict
By Eric L. Kintner
On March 30, 2012, a three-judge panel for the United States Court of Appeals for the Fourth Circuit unanimously agreed to vacate a $44.9 million judgment against Tuomey Healthcare System, Inc. for Stark law violations, holding that the federal district court had violated Tuomey’s Seventh Amendment right to a jury trial and remanding the case. In remanding the case, however, two of the three panel judges took the opportunity to discuss certain Stark law issues that were likely to reoccur on appeal. The court’s discussion provides some guidance for structuring Stark-applicable physician compensation arrangements going forward, especially in light of the government’s positions in this case.
About Snell & Wilmer
Founded in 1938, Snell & Wilmer is a full-service business law firm with more than 500 attorneys practicing in 16 locations throughout the United States and in Mexico, including Los Angeles, Orange County and San Diego, California; Phoenix and Tucson, Arizona; Denver, Colorado; Washington, D.C.; Boise, Idaho; Las Vegas and Reno, Nevada; Albuquerque, New Mexico; Portland, Oregon; Dallas, Texas; Salt Lake City, Utah; Seattle, Washington; and Los Cabos, Mexico. The firm represents clients ranging from large, publicly traded corporations to small businesses, individuals and entrepreneurs. For more information, visit swlaw.com.