January 22, 2015

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RHETORIC VS. REALITY: Obama takes credit for recovery still in the making A8 Stanley Welch Clothiers ONE DAY ONLY!

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Tuomey looks to merge Officials: Once lawsuit is settled, partnership likely

10 YEARS AT A GLANCE Tuomey Healthcare System has been feeling a financial strain for the last decade. The following are some highlights of the hospital’s battle with the federal government: October 2005

KEITH GEDAMKE / THE SUMTER ITEM

After talks of litigation and bankruptcy, Tuomey Healthcare System discussed a possible merger with a yet-to-be-identified health care system Wednesday.

Health care system yet to be identified in possible merger BY JADE REYNOLDS jade@theitem.com Tuomey Healthcare System is proposing a possible merger with a yet-to-be-identified health care system. “We have no choice but to merge with a larger hospital system in order to complete a financial turnaround,” said Michael Schwartz, interim president and CEO of Tuomey Healthcare System, at Wednesday’s Kiwanis Club meeting. “We want to ensure that Tuomey is here, bigger and better, and offering more options. We’re an institute that serves the public, and a partnership will allow us to do it better and more efficiently.” An announcement as to which of the fewer than five health care systems the Sumter one might merge with should come in the next 30 to 60 days after a decision is reached on the latest appeal of the federal lawsuit. That list was narrowed from the initial 11 groups, said Tuomey Board of Directors Chairman John Brabham. “Rumors started that we were already sold,”

he said. “We’re not sold. We’re not going to sell. We may take on a partner. This is the biggest decision for Tuomey in 100 years. It’s not something the board takes lightly.” With consolidation being a national trend, a merger was inevitable, Schwartz said. The financial situation just sped up the search. “It’s best to do it while you have strength, while you can pick the best partner, than when you’re destitute,” he SCHWARTZ said. “It’s best for somebody to take you on when you have the best resources to make an informed decision, when you have a choice. Tuomey is blessed with some good choices.” In fact, a number of health care systems approached Tuomey about three months ago, Brabham said. Even if a partner is selected, it will probably take another six months to a year to finalize a merger, Schwartz said. If you owe Tuomey money, don’t get excited that this means a sudden reduction.

“Those that have bills with Tuomey still owe,” Schwartz said. “They still have to pay their bills.” If you’re a new patient, the partnership would lead to improved and expanded services as well as more efficient health care, he said. The Tuomey representatives are scheduled to give presentations and answer questions at more than a dozen other community groups and gatherings in the next month. You can also contact the hospital by mail — 129 N. Washington St., Sumter, SC 29150 — or speak to board members, Schwartz said.

ADDRESSING CHALLENGES The glaring financial monster has been and continues to be the 10-year battle with the Department of Justice that has had both sides brought before the district court and the appellate court. It’s been an expensive legal battle costing more than $4 million in legal fees last year alone, according to Tuomey’s presentation Wednesday.

Drakeford v. Tuomey Healthcare System Inc. filed. Dr. Michael Drakeford alleges that Tuomey offered him a contract that would require him to perform procedures only at Tuomey’s facilities. While he declined the offer and later told the federal government, 19 other physicians took the offer that, according to the federal government, created an illegal kickback system where the doctors received a percentage of the money the hospital would receive from Medicare and private insurance companies in referral fees. March 2010 First jury trial held. Tuomey is found guilty of violating Stark Law, legislation that governs physician self-referral for Medicare and Medicaid patients, but not the False Claims Act. Tuomey appealed, stating the federal government had vetted the contracts and attorneys had advised them all was in order. June 2010 Federal judge orders Tuomey to pay millions in fines and interest as well as

SEE TIMELINE, PAGE A4

SEE TUOMEY, PAGE A4

Sumter native takes over state DJJ BY MATT BRUCE matthew@theitem.com It’s been two weeks since Sylvia Murray catapulted to the foremost position of one of South Carolina’s most recognizable agencies. Gov. Nikki Haley appointed Murray as the acting director of the Department of Juvenile Justice to a deluge of flowers and fanfare earlier this month. The announcement

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came during a Jan. 8 press conference in Columbia, when Murray took over her new role immediately. Fourteen days have passed, and the rose-scented optimism has yet to fade from the newly minted director’s outlook. She takes over a team of about 1,400 employees charged with providing treatment and restorative care to embattled children in South Carolina. Her title becomes official when she un-

dergoes the confirmation process later this month and the S.C. General Assembly approves Haley’s nomination. “I am humbled to be given this opportunity to continue the legacy of S.C. Department of Juvenile Justice being a national leader in juvenile justice programs and practices,” Murray said via a statement issued

DEATHS, B4 Alice B. Shorter Clara Jo Turner Levan Hilton Wayne Mitchum Aline Wright Heyward A. Holliday

Benjamin F. Hickmon Rebecca M. Duncan John V. Moore Audrey M. James Easter G. Ladson Eddie Lee Glover

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Sumterite Sylvia Murray, left, is seen with Gov. Nikki Haley after Murray was named Department of JuveSEE MURRAY, PAGE A4 nile Justice acting director Jan. 8.

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Sunny to partly cloudy today; mostly cloudy tonight HIGH 61, LOW 42

Clarendon Sun B6 Classifieds B6 Comics B5 Lotteries A12

Opinion A11 Religion A9 Television A10


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January 22, 2015 by The Sumter Item - Issuu