Justice Department extends Tuomey settlement date

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Tuomey Healthcare System is working on a settlement agreement with the U.S. Department of Justice, the hospital system announced Friday through a press release.

The announcement states Federal Judge Margaret Seymour has granted a motion to allow Tuomey to continue to work out a settlement to Oct. 1.

Meanwhile, at the same time Tuomey is working on plans to execute a binding agreement to partner with Palmetto Health.

"We are very confident in the progress that we have made with the Department of Justice to settle this case," said Tuomey Acting President and CEO Michelle Logan-Owens, "and our advanced discussions leading to a binding agreement with Palmetto Health are following a similar timeline."

In July, the U.S. Fourth Circuit of Appeals affirmed an earlier district court decision in the Drakeford vs. Tuomey Healthcare System that awarded damage and civil penalties totaling $237.4 million against Tuomey.

The current extension granted a motion to hold Tuomey's $40 million appeal bond until Oct. 1 which is the newest deadline for the final settlement.