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10th Circuit Finds that Doctor’s Judgment is Not Automatically Reasonable and Necessary

Posted  07/20/18
By Poppy Alexander Top-level heart surgeons work in a rarified world, where few may question their medical judgment. Yet that judgment is not infallible-and its presence is not in itself a protection against False Claims Act liability. The Tenth Circuit recently held as much in United States ex rel. Polukoff v. St. Mark’s Hospital et al., finding that a doctor may be exercising medical judgment while still...

Catch of the Week -- Health Quest Systems and Putnam Hospital Center

Posted  07/13/18
This week, DOJ announced a $14.7 million settlement with NY-based Health Quest Systems, Inc. (Health Quest), and its subsidiary hospital Putnam Health Center (Putnam) based on their submission of inflated and otherwise impermissible claims for payment to Medicare and Medicaid, making Health Quest and Putnam our Catch of the Week. The settlement resolves allegations stemming from three separate lawsuits bought by...

Catch of the Week -- Hundreds of Medical Professionals Charged in Healthcare Fraud Takedown

Posted  06/29/18
This week's Department of Justice "Catch of the Week" goes to the hundreds of medical professionals charged in "the largest healthcare fraud takedown operation in American history." The DOJ brought charges against 601 defendants for their alleged participation in schemes to bill Medicare, Medicaid, TRICARE, and private insurers for medications and treatments that were unnecessary and often never provided. Over a...

Question of the Week -- Will New CMS Initiatives Help Curb Fraud and Waste in Medicaid?

Posted  06/27/18
On June 26, 2018 CMS Administrator Seema Verma announced new initiatives to reduce fraud in the Medicaid program. The three new initiatives are to (1) emphasize program integrity in audits of state claims for federal match funds and medical loss ratios (MLRs); (2) conduct new audits of state beneficiary eligibility determinations; and (3) optimize state-provided claims and provider data. These initiatives are meant to...

Catch of the Week -- Healogics

Posted  06/22/18
This week's Department of Justice "Catch of the Week" goes to Healogics, Inc. On Wednesday, the Florida-based operator of hundreds of wound care centers agreed to pay up to $22.5 million to settle claims it violated the False Claims Act by billing Medicare for medically unnecessary and unreasonable hyperbaric oxygen therapy. See DOJ Press Release. Hyperbaric therapy involves breathing oxygen inside a pressurized...

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...
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