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A “Hat Trick” of Heightened False Claims Act Risks for Health Care Providers



by Adam S. Lurie
Cadwalader, Wickersham & Taft LLP - New York Office

Brian T. McGovern
Cadwalader, Wickersham & Taft LLP - New York Office

July 24, 2012

Previously published on July 19, 2012

At the risk of stating the obvious, fighting and prosecuting health care fraud are top priorities for the Federal Government, and the False Claims Act (“FCA”) is its weapon of choice in the battle. In a speech in June, Stuart Delery, the Acting Assistant Attorney General for the Department of Justice (“DOJ”) Civil Division, stated the DOJ has recovered over $11 billion under the FCA, including over $7.4 billion in health care fraud. The Federal Government has a willing and motivated ally: more than 630 qui tam matters were filed with the DOJ, over two-thirds of which allege false claims to government health care programs. These numbers represent the greatest number of lawsuits ever filed within a year in the 150-plus year history of the FCA. In only the latest example of the Department’s aggressive pursuit of FCA claims, on July 2, 2012, GlaxoSmithKline LLC (“GSK”) agreed to pay $3 billion to the Federal Government to settle FCA allegations.


 

The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
 

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