Tuesday, March 09, 2010

Christiana Care Health System Pays $3.3 Million in False Claims Act Settlement

Christiana Care Health System ("CCHS"), Delaware’s largest health care provider, will pay the United States and the State of Delaware a total of $3.3 million to settle allegations that CCHS violated federal and state False Claims Acts.

The lawsuit alleged CCHS submitted false claims to Medicare and Medicaid by asserting its compliance with all federal and state laws and regulations when in actuality CCHS had a fraudulent financial relationship with a group of Wilmington, Delaware neurologists who, in violation of federal and state law, referred patients to CCHS.

Allegedly, CCHS violated the federal Physician Self-Referral Statue (also known as the Stark Statute) and the Delaware Anti-Kickback Statute by paying the group of neurologists fees for services provided that were significantly higher than what Medicare and Medicaid paid CCHS as reimbursement for those services. 

The lawsuit was filed by two Wilmington, Delaware neurologists as part of a qui tam lawsuit under federal and state False Claims Acts.

Click here to read the full article, “United States Attorney’s Office and Delaware Attorney General’s Office Reach False Claims Act Settlement With Christiana Care Health System”.

14 Entities Pay $15.4 Million to Settle Bid-Rigging and Price-Fixing Allegations

Trelleborg AB, a Swedish manufacturer of marine fenders and hose, along with 13 other corporations and individuals, paid the government approximately $15.4 million to settle civil allegations that they engaged in bid-rigging and price-fixing to fraudulently overbill the Navy and other federal agencies.

Allegedly, Trelleborg and four of its subsidiaries conspired to submit rigged bids, fix prices and allocate market shares on marine fenders and plastic pilings that the Navy and other federal departments and agencies purchased.  The lawsuit also implicated Frank March, and two corporations he formerly controlled, in the conspiracy. 

In addition, the lawsuit alleged that other companies, along with Trelleborg, conspired to commit the same fraudulent acts with respect to marine hose that various federal agencies purchased. 

The $15.4 million payments resolve a “whistleblower” lawsuit under the qui tam provisions of the federal False Claims Act.  The suit was filed by Douglas Farrow, an executive at a Trelleborg competitor.  In accord with the False Claims Act, Mr. Farrow will receive between 15 and 25 percent of the recovery. 

Click here to read the full article, “14 Entities Pay $15.4 Million to Resolve Allegations Of Bid-Rigging And Price-Fixing On Defense Contracts”.

EMC Pays U.S. Government $87.5 Million to Settle Investigation

EMC Corp. has agreed to pay $87.5 million to settle a federal investigation into its pricing practices on sales to federal government agencies, although the company has not admitted any wrongdoing on its part.

The settlement ensures that EMC, which manufactures data storage equipment, will not be suspended or disbarred from selling products to the U.S. government, one of the world’s largest technology products buyers.

The investigation was conducted by the U.S. Justice Department and concerned allegations that EMC violated the terms of agreements through which it sold goods to the U.S government.

Included in the allegations was a potential violation of the False Claims Act, according to EMC’s filings with the U.S. Securities and Exchange Commission.

Click here to read the full article, “UPDATE 1-EMC agrees to pay $87.5 mln to settle U.S. probe”.

Tuesday, March 02, 2010

Mariner Health Care Inc. and SavaSeniorCare Pay $14 Million in False Claims Act Settlement

Atlanta-based Mariner Heath Care Inc. and SavaSeniorCare Administrative Services LLC, along with their principals, Leonard Grunstein, Murray Forman and Rubin Schron, will pay the United States and several states $14 million to settle allegations that the defendants solicited $50 million in kickback payments from Omnicare, the largest pharmacy in the nation which specializes in dispensing drugs to nursing home patients.

The United States alleged that the parties conspired to have Omnicare pay Mariner and Sava $50 million in return for the right to continue providing the nursing homes with pharmacy services.  The parties allegedly tried to mask the kickback as a payment for acquiring a small Mariner business unit that in actuality was worth much less than the stated amount. 

In addition to a monetary settlement, Mariner has agreed to enter into a corporate integrity agreement with the Office of Inspector General of the Department of Health and Human Services through which Mariner will work to detect and prevent similar matters.

This settlement resolves a whistleblower action filed under the qui tam provisions of the False Claims Act. 

Click here to read the full article, “Two Atlanta-Based Nursing Home Chains and Their Principals Pay $14 Million to Settle False Claims Act Case”.

Brookhaven Memorial Hospital Medical Center Pays $2.92 Million in Fraud Allegation Settlement

Brookhaven Memorial Hospital Center is paying $2.92 million, plus interest, to settle allegations that the hospital defrauded Medicare. 

The hospital allegedly inflated its charges to obtain supplemental outlier payments from the federal health care program.  Medicare reserves outlier payments for cases where there is an unusually high cost of care to provide hospitals with an incentive to treat patients requiring such care. 

The suit was originally filed by a whistleblower, Tony Kite, who brought his suit under the qui tam, or whistleblower, provisions of the False Claims Act.  Mr. Kite will receive approximately $613,000, plus interest, out of the civil settlement proceeds. 

Click here to read the full article, “Brookhaven Memorial Hospital Medical Center in New York to Pay U.S. $2.92 Million to Resolve Fraud Allegations”.

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