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False Claims Act Developments: Sixth Circuit Rules that Timing Matters When It Comes to Certifying Plans of Care

Posted  06/21/18
By Leah Judge Reaffirming the importance of patient plans of care, the Sixth Circuit recently held that the timing of a physician’s certification of such plans is material to the government’s decision to pay for home health services. The case marks another circuit court’s application of the materiality standard announced in Universal Health Servs., Inc. v. United States ex rel. Escobar, and serves as a rebuke...

Catch of the Week -- Signature HealthCARE

Posted  06/15/18
In a major victory for patients and taxpayers alike, DOJ announced an over $30 million settlement with Signature HealthCARE, LLC, a Kentucky-based company accused of overbilling federal healthcare programs for rehabilitation and skilled-nursing services. As a prime example of how valuing profits over patients can lead to fraudulent behavior, Signature HealthCARE wins the title of Catch of the Week. The settlement...

How Copayment Waivers can Give Rise to a Whistleblower Claim

Posted  06/8/18
Kickbacks in healthcare What’s not to like about a doctor waiving a patient’s copayment, or a pharmaceutical company offering a prescription drug assistance program? Turns out there are plenty of reasons to be concerned about such activities. And, as a recently announced $24 million settlement with Pfizer illustrates, unlawful patient cost waivers can result in big liability for defendants. Patient cost-sharing is a core principle...

US Obtains $114M FCA Judgement in Kickbacks Case

Posted  05/31/18
On May 23, the US District Court in South Carolina issued judgment for the US for roughly $114M against three individuals, LaTonya Mallory, Floyd Dent III, and Robert Johnson, for violating the FCA by paying kickbacks to doctors in exchange for patient referrals. The defendants also caused two labs to bill Medicare, TRICARE, and Medicaid for medically unnecessary tests. The judgment follows a January jury verdict that...

Pfizer Agrees to Pay $23.85 Million to Resolve False Claims Act Liability for Paying Kickbacks

Posted  05/24/18
The Department of Justice today announced that Pfizer agreed to pay $23.85 million to resolve allegations that it used a foundation as a conduit to pay the copays of Medicare patients taking three Pfizer drugs. Medicare Part B or D beneficiaries typically make a partial payment when obtaining prescription drugs in the form of a copay, coinsurance, or deductible. Under the Anti-Kickback Statute, pharmaceutical...

Ex-Manager and CEO Convicted in $9.7 Million Valeant Kickback Scheme

Posted  05/23/18
By the C|C Whistleblower Lawyer Team Yesterday, a federal jury in Manhattan convicted Gary Tanner, a midlevel executive at Valeant Pharmaceuticals International, and Andrew Davenport, the CEO of Philidor Rx Services, of conspiring to bring about Valeant’s purchase of Philidor in exchange for a $9.7 million kickback. The scheme allegedly netted Davenport $40 million, and he kicked back a portion of it to...

Michigan Home Health Agency Owner Pleads Guilty to Health Care Fraud Charges

Posted  05/18/18
The owner of a Michigan home health agency pleaded guilty to fraud charges for his role in a scheme involving approximately $8 million in fraudulent Medicare claims for home health services that were procured through the payment of illegal kickbacks. Zahir Shah, 48, of West Bloomfield, Michigan, pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to pay and...

Medicare Fraudsters Beware; DOJ May Be Reviewing Your Billing Data

Posted  05/15/18
By the C|C Whistleblower Lawyer Team Maryland physician Sureshkumar Muttath agreed to pay more than $1.5 million to settle claims he violated the False Claims Act by submitting claims to Medicare for medically unnecessary autonomic nervous function tests and neurobehavioral status exams.  The settlement originated under DOJ’s new initiative of tracking irregularities in Medicare billing data.  See DOJ Press...

Jazz Pharmaceuticals Sets Aside $57M to Settle DOJ Probe

Posted  05/9/18
Jazz Pharmaceuticals Plc disclosed yesterday it has reached a tentative agreement to pay $57 million to resolve a Justice Department probe over its donations to charities that reduce drug prices for Medicare patients. The company manufactures Xyrem, a costly drug used to treat narcolepsy. Jazz had previously received multiple DOJ subpoenas concerning its charitable donations and announced the agreement in principle...

New York Urgent Care Clinic Pays Over $6.6M to Settle FCA Suit

Posted  05/7/18
By the C|C Whistleblower Lawyer Team CityMD, a company that manages over 80 urgent care clinics in and around New York City, has settled allegations that it billed Medicare for more expensive services than were actually performed, and that it billed Medicare under the names of doctors who did not actually perform the services. Under the terms of the settlement, CityMD also accepted responsibility for its...
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