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Health Law Checkup - April 2012
Fourth Circuit Discusses Stark Issues in Remand of Tuomey $45 Million Stark Verdict

04/23/2012

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.

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