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Government Enforcement Actions

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January 24, 2014

Tennessee Orthopedic Clinics and Appalachian Orthopedic Clinics agreed to pay a combined $1.85M to resolve state and federal False Claims Act allegations that they knowingly billed state and federal health care programs for reimported osteoarthritis medications. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ

January 23, 2014

GE Hitachi agreed to pay $2.7 million to resolve allegations under the False Claims Act that it made false statements and claims to the Department of Energy and the Nuclear Regulatory Commission concerning an advanced nuclear reactor design. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ

January 17, 2014

RehabCare Group and other contract therapy providers agreed to pay $30 million to resolve claims that they violated the False Claims Act by engaging in a kickback scheme related to the illegal referral of nursing home business. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ

January 10, 2014

Two former executives of HealthEssentials Solutions agreed to pay more than $1 million to resolve False Claims Act allegations that they knowingly caused the company to submit false Medicare claims between 1999 and 2004 by billing for services that were inflated or not medically necessary and by pressuring employees to do the same. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ

January 7, 2014

Dr. Ravi Sharma, owner and operator of Premier Vein Centers, agreed to pay $400,000 to resolve allegations that he and his clinics violated the False Claims Act by knowingly billing Medicare for vein injections and physician office visits performed by unqualified personnel. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ

December 31, 2013

St. James Healthcare and its parent company, Sisters of Charity of Leavenworth Health System, agreed to pay $3.85M to resolve allegations that they violated the Anti-Kickback Statute, the Stark Law and the False Claims Act by improperly providing financial benefits to physicians and physician groups that made referrals to the hospital. DOJ

December 27, 2013

Abbott Labs agreed to pay $5.5M to resolve allegations that it violated the False Claims Act by paying kickbacks to induce doctors to use the company’s vascular products. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act.DOJ

December 20, 2013

Genzyme Corp. agreed to pay $22.3M to resolve allegations that it marketed, and caused false claims to be submitted to federal and state health care programs for use of a “slurry” version of its Seprafilm adhesion barrier. The allegations were first raised in a qui tam lawsuit filed under the whistleblower provisions of the False Claims Act. DOJ
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