Tenet Healthcare has agreed to pay $42.75 million to resolve claims that facilities owned by the corporation billed Medicare for medically unnecessary rehabilitation services. The False Claims Act prohibits submission of a false claim or actions which cause a false claim to be submitted for money or property in control of…
WellCare Health Plans, Inc. reached a settlement with the federal government this week over allegations that the company to Medicare, Medicaid, and other government health programs, all in violation of the False Claims Act. The Tampa-based health insurer will pay $137.5 million to the United States, nine individual states, and four…
Harbert Corporation and its affiliated entities reached an agreement with the United States Department of Justice to settle long-standing False Claims Act allegations. According to the settlement, the international construction company had conspired to rig the bidding process for government contracts in order to maximize private profits at the expense of…
Cayuga Medical Center, located in Ithica, New York, recently settled False Claims Act allegations that the medical center submitted false claims for payment under Medicare and Medicaid. The government’s investigation was initiated and aided by Daniel S. Jorgenson, a physician practicing in the Ithica area who came forward as a whistleblower under the…
Third party litigation has recently been a hot topic in the U.S., spurring speculation as to whether hedge funds will similarly begin funding whistleblower cases. A recent article on Pharmalot suggests that this leap may be likely and points out that whistleblower cases may be prime targets for investors, because…
With a 215 to 144 vote, the U.S. House of Representatives passed the Food Safety Modernization Act, with only minor changes to the Senate’s version of the bill. With President Obama expected to sign off, the Act will soon become law. The chief purpose of the Act is to vest…
A new trend in healthcare fraud enforcement reflects a willingness by hospitals to be more forthcoming. Detroit Medical and St. Mary’s Medical Center in Pennsylvania recently reported improper financial relationships with physicians — voluntarily. Detroit Medical entered into a $30 million settlement agreement with the U.S. government stemming from violations…
The Justice Department recently announced the $280 million settlement of a False Claims Act case against Dey Pharmaceuticals, of which $67.2 million will be awarded to whistleblower Ven-A-Care. The case accused Dey of reporting false and inflated prices for four drugs used to treat asthma and respiratory conditions. Federal health…
When the SEC released proposed whistleblower regulations required under Dodd-Frank, they requested comments from the public. In response, Arent Fox, a law firm that represents Wal-Mart and drugmakers Elan and Genzyme, recently sent a letter to the SEC. In it, the firm advocated that the SEC first require employees to…
Allergan recently brought an injunctive action against the FDA asserting the unconstitutionality of several of its provisions regulating off-label promotion. Advancing their First Amendment argument, Allergan employs many of the same arguments put forth in Caronia (for more information on this topic, see here). However, a primary difference distinguishing Allergan…