January 3, 2017

Top-10 DOJ False Claims Act Recoveries For 2016

By the C|C Whistleblower Lawyer Team

Here is our look-back at the top-10 Department of Justice False Claims Act recoveries for 2016. Click here for a full chronological listing of all the DOJ False Claims Act recoveries for 2016.

10. Vibra Healthcare — The Pennsylvania-based hospital chain agreed to pay $32.7 million to resolve claims it violated the False Claims Act by billing Medicare for medically unnecessary services by admitting patients to its long term care hospitals and rehab facilities who did not demonstrate signs or symptoms that would qualify them for admission. Whistleblower Insider

9. 21st Century Oncology — The nation’s largest physician led integrated cancer care provider, and its wholly owned subsidiary South Florida Radiation Oncology agreed to pay $34.7 million to settle charges they violated the False Claims Act by performing and billing for cancer care procedures that were not medically necessary or properly provided. Whistleblower Insider

8. Regions Bank — The Birmingham-based bank agreed to pay $52.4 million to settle charges it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements. Whistleblower Insider

7. Genentech Inc./OSI Pharmaceuticals — The companies agreed to pay $67 million to resolve charges they violated the False Claims Act by making misleading statements about the effectiveness of the cancer drug Tarceva. Whistleblower Insider

6. Bechtel/AECOM — Bechtel National Inc., Bechtel Corp., URS Corp. (predecessor in interest to AECOM Global II LLC) and URS Energy and Construction Inc. (now known as AECOM Energy and Construction Inc.) agreed to pay $125 million to resolve allegations they violated the False Claims Act by charging the Department of Energy for deficient nuclear quality materials, services, and testing that was provided at the Waste Treatment Plant at DOE’s Hanford Site near Richland, Washington. DOJ

5. Kindred Healthcare, Inc. — The Kentucky-based healthcare provider and its two RehabCare Group subsidiaries agreed to pay $125 million to resolve allegations of violating the False Claims Act by knowingly causing skilled nursing facilities to submit false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary and skilled, or that never occurred at all. Whistleblower Insider

4. Life Care Centers of America Inc. — The Tennessee-based operator of more than 220 skilled nursing facilities agreed to pay $145 million to resolve charges it violated the False Claims Act by submitting claims to Medicare and TRICARE for rehabilitation therapy services that were not reasonable, necessary or skilled. Whistleblower Insider

3. Tenet Healthcare Corporation — The Florida-based hospital system and two of its Atlanta-area subsidiaries, Atlanta Medical Center Inc. and North Fulton Medical Center Inc., agreed to pay over $513 million to resolve charges they violated the False Claims Act and Anti-Kickback statute through illegal kickbacks it paid in exchange for patient referrals. DOJ

2. Olympus Corp. of America — The country’s largest distributor of endoscopes and related equipment agreed to pay $623.2 million to resolve alleged violations of the False Claims Act and Anti-Kickback Statute through a scheme to pay kickbacks to doctors and hospitals. Whistleblower Insider

1. Wyeth/Pfizer, Inc. — The pharmaceutical giants agreed to pay $784.6 million to resolve allegations that Wyeth violated the False Claims Act by reporting to the government false prices on two of its proton pump inhibitor (PPI) drugs, Protonix Oral and Protonix IV. Whistleblower Insider

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