Update on Federal Court Case

To the friends of Tuomey:

I would like to share some additional news concerning our court case. You are all aware that a new trial has been postponed until the Fourth Circuit has a chance to review the entire case. This is news we are very pleased with. Our legal team filed an additional brief with the court earlier in the month, and we are now waiting on the government to respond. In addition, we are very pleased with a recent filing by the American Hospital Association (AHA) in support of our case. This is a major stand by the AHA, and we are proud of their support. Click the following links for both filings – Tuomey’s and the AHA’s.

Thank you for your continued support.

Jay Cox
President & CEO

McLeod Healthcare is NOT buying Tuomey

To the friends of Tuomey:

We have become aware of a rumor that McLeod Healthcare is, or may be, in negotiations to purchase Tuomey Healthcare. These rumors are simply NOT true. There have been NO discussions, negotiations or any other contact between Tuomey and McLeod concerning the sale of Tuomey or any part of Tuomey.

While we feel that it is difficult to respond to each and every rumor that may arise as the future of healthcare in all communities becomes a part of the national debate, we feel that it is important to respond to this particular issue.

Thank you for your continued support, and we are looking forward to a great 2011.

Sincerely,

Chal Glenn
Chair, Tuomey Healthcare System Board of Trustees

Jay Cox
President & CEO, Tuomey Healthcare System

AHA supports Tuomey in Stark Law appeal

The American Hospital Association (“AHA”) has submitted an amicus curiae brief in support of Tuomey Healthcare System, Inc.

AHA is particularly interested in this case because it presents two matters of first impression in the federal appellate courts concerning the Ethics in Patient Referrals Act, more commonly known as the Stark Law.

The first is whether hospitals are entitled to rely on official commentary published by the Centers for Medicare and Medicaid Services (“CMS”) in making decisions about how to structure their operations to be compliant with the Stark Law.

The second is what evidentiary showing is required to determine the amount the Government may recover—in equity or otherwise—for hospital services furnished pursuant to “referrals” that purportedly violate the Stark Law.

The AHA's position is that hospitals must be able to rely on the Centers for Medicare & Medicaid Services' official guidance for complying with the Stark Law, without worrying that the Department of Justice will later disavow conduct consistent with the guidance, the AHA said in an amicus brief filed yesterday in the U.S. Court of Appeals for the 4th Circuit.

To read the entire brief that was filed click here.

* Founded in 1898, AHA is the national advocacy organization for hospitals in the United States. It represents approximately 5,000 hospitals, health care systems, and other health care organizations, as well as 37,000 individual members.

AHA’s mission is to promote high quality health care and health services through leadership and assistance to hospitals in meeting the health care needs of their communities.