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False Claims Act Archives

Company settles major False Claims Act case for $14.4 million

In 2009, the National Energy and Technology Laboratory (NETL) awarded a $14-million cooperative agreement to a company called North American Power Group Ltd. (NAPG) to collect and analyze carbon data and to design and implement carbon sequestration wells in Wyoming. NAPG's owner, Michael Ruffatto, represented the company and authorized its invoices. Between 2009 and 2012, he billed NETL some $5.7 million for project-related costs.

Whistleblower to receive $1,402,500 in False Claims Act case

"When hospices increase their bottom lines by billing taxpayers for unneeded services, they are diverting money from vulnerable, terminally-ill individuals," said a spokesperson for the U.S. Department of Health and Human Services Office of the Inspector General. "Worse yet, these patients may not be receiving care for medical needs that would otherwise be covered in a non-hospice setting."

Hospital to pay $784,000 to resolve False Claims Act allegations

Livingston Regional Hospital, LLC, of Tennessee has agreed to settle a False Claims Act case brought against it in federal court. It will resolve the allegations for $784,000. The hospital is owned by LifePoint Health, Inc., which operates hospitals across the U.S.

Whistleblowers to get $4,276,900 reward in improper billing case

A company called Healogics, Inc., has agreed to settle False Claims Act allegations for up to $22.51 million. The Florida company, which manages almost 700 hospital-based wound care centers nationwide, is accused of knowingly causing their wound care centers to falsely bill Medicare for hyperbaric oxygen ("HBO") therapy that was either unreasonable or medically unnecessary.

Nursing home concern to pay $30 million in False Claims Act case

Skilled nursing facilities are in a position of trust. Especially when Medicare and Medicaid are involved, some nursing home patients are vulnerable. To protect them and the American taxpayer, their care should always be directed by their medical needs; never by the financial interests of the nursing home.

3 whistleblowers to get $4.4 million in Navy contract fraud case

Three former employees of a UK-based marine services contractor called Inchcape Shipping Services Holdings Limited filed a lawsuit accusing Inchcape and some of its subsidiaries with intentionally defrauding the U.S. Navy. The federal government intervened in the case, which was brought under the False Claims Act. Under the FCA, the government can obtain triple damages and penalties from parties who commit fraud in relation to government contracts.

Mercy Health to pay $14.25 million over improper doctor payments

Cincinnati-based Mercy Health, a nonprofit healthcare organization operating in Ohio and Kentucky has agreed to pay the United States $14,250,000 to settle False Claims Act allegations. According to the Justice Department, Mercy Health made improper payments to physicians.

Whistleblower says Insys paid kickbacks for opioid prescriptions

The Justice Department and six U.S. states have joined a whistleblower's lawsuit against Insys Therapeutics, Inc. In the lawsuit, the drug maker is accused of trying to make more profit on Subsys, a spray form of the opioid fentanyl, by paying kickbacks to induce doctors to prescribe the drug. It is also accused of knowingly having insurers and federal healthcare programs to pay for Subsys when it was not medically necessary.

DOJ awards $1,645,600 in case of false billings for oxygen

Respiratory equipment supplier Rotech Healthcare, Inc., has agreed to settle False Claims Act Allegations for $9.68 million. Moreover, as part of the settlement agreement, the company admits that it knowingly billed Medicare for portable oxygen tanks (contents) that patients didn't need or use -- and regardless of whether the tanks were actually delivered.

Whistleblower awarded $3.3 million in major False Claims Act case

When Medicare patients could reasonably be treated on an outpatient basis but are admitted for inpatient care, the result is more expense for the government with no reason to expect a better outcome. Furthermore, patient admitting decisions should always be made for medical reasons, not to drive up reimbursements.

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