Tuomey inks Palmetto affiliation deal, $72.41 million DOJ settlement

By Caroline Salls

Pittsburgh, Oct. 16 – Tuomey Healthcare System executed a binding affiliation agreement with Palmetto Health on Friday under which Palmetto Health has pledged major capital improvements in Tuomey and increased healthcare services in three counties, according to a news release.

Together with Palmetto Health, Tuomey said it will be able to enhance and expand the service capability of its local organization, which will allow it to better meet the healthcare needs of those it serves.

The binding affiliation agreement is expected to close on Jan. 1.

In addition, Tuomey said it signed a settlement agreement with the Department of Justice that resolved a $237 million judgment against Tuomey.

Upon finalization of the partnership with Palmetto, Tuomey said the settlement will “bring to a close a decade-long journey to resolve outstanding issues with the United States Department of Justice.”

Under the settlement, the Department of Justice will be paid $72.41 million, which includes $40 million previously placed in escrow by Tuomey with the U.S. district court.

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