Author: Qui Tam

Maryland Biotech Company Pays $934,000 to Settle False Claims Act Lawsuit

Advanced BioNutrition Corporation, of Columbia, Maryland, and its former chief executive officer, David Kyle, paid the federal government $934,000, stemming from violations of the False Claims Act, federal prosecutors said Thursday. Advanced BioNutrition Corporation was awarded the first phase of a National Science Foundation Small Business Innovation Research grant in February 2005 to develop technology to micro-encapsulate probiotic bacteria into particles.

Health Alliance of Greater Cincinnati, Two Ohio Hospitals, and Physician Group to Pay $2.6 Million to Resolve Fraud Allegations

The Health Alliance of Greater Cincinnati, two of its member hospitals (The Fort Hamilton Hospital and The University Hospital), and University Internal Medicine Associates Inc. have agreed to pay the United States $2.6 million to settle claims that they violated the Anti-Kickback Statute and the False Claims Act by engaging in a kickback-for-referral scheme, 

Dermatologist Pays $2.75 million to settle false Claims Suit

A New York dermatologist settled a false claim lawsuit against him for $2.75 million.  The physician was able to collect higher reimbursements from Medicaid by classifying himself as a primary care physician instead of as a dermatologist, allowing him to collect fees for services not actually provided.

More information can be found at: http://online.wsj.com/article/BT-CO-20100610-711174.html?mod=WSJ_latestheadlines&mg=com-wsj

OIG Seeks to Bar Executives of Companies that committed Fraud from Medicare

The Office of Inspector General is seeking new powers from Congress to exclude offending corporate executives from Medicare if their companies committed healthcare fraud.  Under current law, OIG can only seek to bar executives from working for the companies that committed fraud.  However, they are still able to work for other companies in the healthcare industry. 

Cochlear Americas settles False Claims Case for $880,000

Cochlear America, a manufacturer of cochlear implants, has settled a false claims case against it, alleging that it made illegal payments to health care providers to induce the purchase of its implant systems.  Cochlear implants are small, complex electronic devices that can help to provide a sense of sound to a person who is profoundly deaf or severely hard-of-hearing. 

Johnson and Johnson Moves to Dismiss Anti-Kickback Lawsuit on Grounds that its Conduct Constituted Acceptable Business Practices

Johnson and Johnson filed a motion to dismiss a lawsuit against it under the False Claims Act for allegedly paying kickbacks to Omnicare, Inc to push Johnson & Johnson drugs to nursing home patients.  Omnicare earlier settled a lawsuit against it for $98 million for accepting such kickbacks, although Omnicare denied liability.

Office Depot Settles Claims of Deceptive and Unfair Consumer Practices for Overcharging Government Agencies for Office Supplies

The Florida Attorney General settled claims under the state’s false claims act against Office Depot for allegedly overcharging government offices for supplies.  The case was settled for $4.5 million.  As part of the settlement, the state of Florida will also be reimbursed an additional $1.3 million for its investigative and legal expenses.

Health and Human Services Touts New Policy to Bar Executives of Companies recidivist Violators of Healthcare Fraud from Their Jobs or Industry.

The Department of Health and Human Services has begun a policy to eject executive of companies guilty of healthcare fraud if they were in a position to stop the fraud from occurring.  The HHS policy reflects frustration with repeat offenders of healthcare fraud and acknowledges that while the government must continue to do business with some companies,

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