Friday, June 26, 2009

North Carolina Whistleblower Case is Heard by Supreme Court

A new case the U.S. Supreme Court will hear may set new limits on qui tam lawsuits against drug makers, biotechnology companies and other businesses. The suit concerns a North Carolina water district that was accused of fraudulently seeking federal money for storm cleanup. Although the main allegations had already been made public, a federal appeals court ruled that a whistleblower could sue the district under the U.S. False Claims Act. The Pharmaceutical Research and Manufacturers of America and the Biotechnology Industry Organization said that if the Supreme Court does not take up the case, False Claims lawsuits would “skyrocket.”

Click here for the full article “Whistleblower Lawsuits Will Get Scrutiny By U.S. Supreme Court"

Thursday, June 11, 2009

Hawaii Hospital Settles Qui Tam Lawsuit for $2.5 Million

The largest private hospital in Hawaii has agreed to pay $2.5 million to settle two lawsuits alleging the Honolulu based hospital overcharged Medicare, the state’s Medicaid program and TRICARE, a health benefits program for military dependents. The settlement has come after five years of negotiation between The Queen’s Medical Center and the government. Two whistleblowers, former employees, began the suit and were not identified in the settlement announcement. They will receive $400,000 out of the settlement for their involvement.

The suit alleged the hospital submitted false claims seeking payments for anti-psychotic medications which were prescribed by physicians without prior knowledge of a psychiatrist among other allegations. In addition to the payment, Queen’s entered a corporate integrity agreement with the U.S. Department of Health and Human Services, which will maintain a compliance program to assure the hospital billings are genuine.

Click here to read the full article “Hawaii’s largest private hospital settles lawsuits"

NJ Hospital Settles a Second Time in Similar Qui Tam Suit

The University of Medicine and Dentistry of New Jersey will pay the United States $2 million to resolve allegations that its hospital defrauded Medicaid. The suit originated in a qui tam complaint filed by Dr. Steven Simring. For nine years the hospital submitted duplicate claims to Medicaid which were also submitted by doctors working in the outpatient centers, effectively double billing the Medicaid program. New Jersey previously recouped $4.9 million from the hospital on similar criminal complaint files.

Dr. Simring will receive $801,000 of the total federal recovery for his involvement in the case.  The settlement was achieved by the Office of the Inspector General of Department of Health and Human Services and the Justice’s Department’s Civil Division.

Click here to read the full article “New Jersey University Hospital to Pay Additional $2 Million to Resolve Fraud Claims that Facility Double Billed Medicaid"

Tuesday, June 02, 2009

Healthways Pays $40 Million in 15-Year Qui Tam Lawsuit

A 15-year qui tam lawsuit against Healthways, Inc. has been settled for almost $40 million in damages and fees to the U.S. government and the whistleblower. A former marketing representative for Healthways, A. Scott Pogue, filed a qui tam lawsuit under the United States Civil False Claims Act. Mr. Pogue will receive between 25 and 30 percent of the government’s recovery for his involvement and Healthways, Inc. will pay the $12 million in attorney and litigation fees he accumulated throughout the suit.

Healthways was charged with violating the Anti-Kickback Statute by paying kickbacks to more than 200 doctors in exchange for referring their patients to DTCA’s hospital customers around the U.S. In 1995 the Justice Department declined to intervene in the case; however, Mr. Pogue and his attorneys decided to continue the case.

Recoveries are usually much lower than when the Justice Department does not support the whistleblower. This case “demonstrates the wisdom of Congress in deciding that the government’s decision not to participate does not mean that a case has no merit.”

Click here to read the full article, “Whistleblower Case Against Healthways, Inc. Settled For $40,000,000"

Monday, June 01, 2009

Defense Contractor Pays $1.7 Million for Alleged Overbilling of U.S. Air Force

A subsidiary of URS Corporation paid $1.8 million to the U.S. government to settle a whistleblower lawsuit alleging the company overbilled the U.S. Air Force for aircraft parts and services. The company, EG&G, a Maryland-based national defense contractor, did not admit wrongdoing in the settlement. The whistleblower was an employee of the company and will receive $317,729 for filing the initial qui tam suit.

Click here to read more from, “URS unit pays $1.7 mln to settle whistleblower suit"

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