Wednesday, November 30, 2005

Delaware Healthcare Firm agrees to settle Lawsuit with $150K Payment

Harbor Healthcare of Lewes, DE, has agreed to pay $150,000 to settle a lawsuit alleging that it provided poor-quality treatment to children in its care in 1998 and 1999, according to delmarvanow.com.

The affected children were severely disabled, in some cases in a persistent vegetative state, according to a statement from the Delaware and U.S. justice departments.

Harbor Healthcare was accused of violating the federal False Claims Act by billing Delaware’s Medicaid program for work that was inadequate, officials said. The facility allegedly had too few employees and those workers allegedly weren’t properly trained to operate feeding tubes and perform other duties.

Click on the link for the full story on the false claims settlement.

Kansas Lawmakers enact False Claims Legislation to curb Medicaid Fraud

Kansas lawmakers looking to curb runaway growth in Medicaid recommended changes last week designed to save money — among them a civil False Claims Act that would give the state another way of recovering fraudulently used Medicaid dollars.

According to the story in the Kansas City Star, making a false Medicaid claim a civil offense would make it easier for the state to recoup lost money. Click the link to read the full story on false claims.

Tuesday, November 22, 2005

Contractors use False Claims Act for Competitive Edge

A story in yesterday’s Washington Technology describeds a new cottage industry in the nation’s capital: blowing the whistle on competitors with noncompliant government contracts. According to the article, it pays well!

The story says that in the past six months, three major office-supply contractors — OfficeMax Inc., Office Depot Inc. and Staples Inc. — paid $22 million in False Claims Act settlements to the US government. The government in turn paid two executives of Safina Office Products Inc. of Houston $3.2 million as their reward for helping auditors and investigators build a case against the three under the False Claims Act. More such cases appear to be in the works. Click on the link to learn about this novel use of the False Claims Act.

Friday, November 18, 2005

California Doctors to Pay $32.5 Million to Settle False Claims Act Suit

Four California doctors will pay $32.5 million to settle allegations that they performed unnecessary heart surgeries at the Redding (CA) Medical Center, according to a report in corporatecrimereporter.com.

The settlement requires the doctors – Fidel Realyvasquez, Kent Brusett, Chae Moon and Ricardo Javier Moreno-Cabral – to provide their insurance carrier with a consent to settle for their insurance policy limits, which total $24 million. Realyvasquez, a heart surgeon, and Dr. Chae Moon, a cardiologist, will each pay $1.4 million in the settlement.  Brusett, a heart surgeon, will pay $250,000 over 10 years. Moon and Realyvasquez each agreed to never perform any cardiology procedures or surgeries paid for by the federal government.

Father John Corapi, a Catholic priest, had coronary artery bypass surgery recommended to him at Redding Medical Center, but he didn’t believe he needed the surgery. After conferring with other physicians and meeting with RMC hospital officials, he and his friend, Joseph Zerga, filed a False Claims Act lawsuit under seal on November 5, 2002. Three days later, Dr. Patrick Campbell, a local doctor in Redding, filed his complaint under seal, alleging suspicions about the unnecessary surgeries.

Click on the link for corporatecrimereporter.com’s coverage of the false claims act settlement.

Tuesday, November 15, 2005

Former Utah Official wins Whistleblower Suit

A former Uintah County (Utah) road superintendent has won a whistleblower lawsuit against the county, claiming he was fired after reporting inferior work. John Kay is entitled to 90 days in wages, insurance premiums and medical benefits, according to a ruling by 8th District Judge John R. Anderson. He also is entitled to attorney fees and court costs.

According to The Salt Lake Tribune, Kay was fired in January 2002 after reporting irregularities and poor workmanship on county road projects to his superiors. He filed suit in March 2002, claiming he was fired for criticizing work of private entities that had contracts with the county. Click on the link to read the full account of this whistleblower suit.

Printer Friendly Page