Tuomey's CEO and VP resign from hospital

Published: Sep. 26, 2013 at 8:14 PM EDT|Updated: Oct. 6, 2013 at 8:14 PM EDT
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Tuomey Healthcare System President and CEO Jay Cox and Executive Vice President/COO Gregg Martin have negotiated an exit from the hospital's administrative staff, according to a news release from the company.

SUMTER, SC (WIS) - The release says the pair and the hospital mutually agreed to a separation agreement.

The terms of Cox and Martin's release are confidential since it is a personnel matter, according to the hospital.

"It has been my greatest joy to live in Sumter and work with the fine people of Tuomey Healthcare System," said Cox in the statement. "I wish the board, the physicians, the employees and the hospital the absolute best as Tuomey moves forward in our mission to provide excellent healthcare to all the people in our community. I truly appreciate the opportunity to have served Tuomey and Sumter for the past 28 years."

Cox was at the hospital's helm for 28 years, including this year during a federal trial that ended disastrously for Tuomey.

A jury in Columbia found the healthcare provider had violated two federal statutes: the so-called Stark Law and the False Claims Act.

The charges linked to multiple allegations of Medicare fraud after the hospital signed doctors to exclusive contracts designed to funnel patients to them and away from other physicians who had set up their own outpatient surgery center.

The first federal prosecution of those claims led to a split decision: $45 million in penalties and an appeal to the 4th Circuit.

The second trial this spring puts penalties assessed against Tuomey at more than $230 million.

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