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Earlier this month a federal court stunned Tuomey Healthcare System by finding the healthcare provider’s compensation system to physicians for referrals violated the Stark law, which imposes limits on physicians and health systems profiting from referrals, and the False Claims Act.
Tuomey faces penalties as high as $357 million for the violations. But more importantly, their case means federal prosecutors are serious about anti-kickback statutes and hospitals should be pulling out their contracts with physicians to determine if they, too, might be in violation.
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