Friday, December 23, 2005

Georgia Nursing Home to pay $2.5 Million to resolve False Claims Act Allegations

Life Care Centers of America Inc., the operator of a skilled nursing facility located in Lawrenceville, GA, known as Life Care Center of Lawrenceville, and two investor companies have agreed to pay $2.5 million to resolve multiple allegations of federal False Claims Act violations for billing for services that either were not provided or were deficient.

According to a press release from the US Department of Justice, the original complaint, filed by five whistleblowers in November 2002, alleged a systemic failure by Lawrenceville to provide appropriate nursing care to its residents and also alleged that such failure resulted in the premature deaths of several residents. The whistleblowers’ complaint alleged that the failure of care was the result of severe understaffing, inadequate staff training, high staff turnover, an ineffective medical director, poor nursing documentation, and insufficient budgetary allowances. The whistleblowers all had family members who were residents at Lawrenceville. The government’s investigation of these allegations led it to intervene in the action in October 2005.

The three private citizens who originally filed the qui tam action and who remain parties to this case will receive a total of $400,000 for their efforts.

Click the folowing link the read the full press release on the Georgia nursing home false claims settlement.

Thursday, December 22, 2005

Eli Lilly to pay $36 Million to settle Charges

Eli Lilly and Co. has agreed to plead guilty to a federal misdemeanor and pay $36 million to settle charges that it illegally marketed and promoted its Evista osteoporosis drug for two unapproved uses, according to an Associated Press story that appears in BusinessWeek Online.

The US Department of Justice said that some Lilly sales representatives promoted Evista in 1998 as useful for preventing and reducing the risk of both breast cancer and heart disease. The Food and Drug Administration has approved neither use. Click the following link to read the full account of Lilly’s false claims settlement.

Monday, December 19, 2005

Questions of Overbilling dog U of Medicine and Dentistry of New Jersey

An Associated Press (AP) report today says the University of Medicine and Dentistry of New Jersey (UMDNJ), already weathering criticism over how’s it’s managed, is now facing new charges that university officials may have overlooked years of medical overbilling. Officials were told repeatedly and as early as 1999 that the UMDNJ’s University Hospital in Newark had billing problems with the government health programs, Medicare and Medicaid, according to documents obtained by The Star-Ledger of Newark.

Click the following link to read the AP story on the fraud charges.

Wednesday, December 14, 2005

Terminated Pfizer Exec files Lawsuit Against Former Employer

The law firm for former Pfizer Vice President Peter Ros announced today that it filed a wrongful termination lawsuit on December 12, 2005 against Pfizer, Inc., on behalf of its client.

The law firm of Green & Savits LLC, which is located in Morristown, NJ, said the complaint alleges that Pfizer and the indiviual defendants violated the NJ Conscientious Employee Protection Act, the whistle-blowing prohibition of the False Claims Act, New Jersey common law public policy prohibiting retaliation against whistleblowers and retaliated against a grand jury witness in violation of federal law. Click on the following link to read the full press release on the whistleblower’s complaint.

Michigan AG says Legislation will save State Millions from Medicaid Fraud

Michigan Attorney General Mike Cox applauded the Legislature’s passage of The Medicaid Whistleblower Protection legislation today, according to a press release issued by the AG’s office via PRNewswire. Cox and the bill’s sponsor, Rep. David Law (R-Commerce Township), unveiled the legislation in March 2005 as part of the Attorney General’s ongoing fight against millions in Medicaid fraud.

The statute amends the Medicaid False Claims Act to provide whistleblowers with legal protection, as well as a financial incentive to those willing to bring a civil suit against and assist in the investigation and prosecution of a violator of the Medicaid False Claims Act. Click on the following link to read the press release on the Michigan Medicaid False Claims Act.

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