The Department of Justice announced on September 6, 2012, that the government has intervened in a whistleblower lawsuit against Hospice of the Comforter Inc. (“HOTCI”) alleging false Medicare. HOTCI provides hospice services to patients residing in the vicinity of Orlando, Fla.
New York Downtown Hospital, located in lower Manhattan near New York City’s financial district, will pay $13.4 million to settle two lawsuits pending in the United States District Court for the Eastern District of New York.
The lawsuits entitled United States and New York State ex rel.
The Institute of Medicine (“IOM”) issued a report on September 6, 2012, finding that the U.S. health care system loses roughly $750 billion a year through “unneeded care, Byzantine paperwork, fraud and other waste.” IOM confirmed that $75 billion of the $750 billion lost is because of healthcare fraud.
Taxpayers Against Fraud Education Fund recently launched their new website. When you have a few extra minutes, be sure to check it out at www.taf.org.
On July 31, 2012, the U.S. Court of Appeals for the Fifth Circuit rendered an opinion in a case of first impression. The Court held that a federal employee, even one whose job it is to investigate fraud, is a “person” under the False Claims Act and may maintain a qui tam action.
Johnson & Johnson has agreed to pay $181 million to resolve allegations of inappropriate marketing of the drug Risperdal. Thirty-six states and the District of Columbia will share in the settlement money.
The lawsuit alleges that Janssen Pharmaceuticals Inc.
On August 30, 2012, the Department of Justice (DOJ) began emailing hospitals across the country with strict instructions to examine questionable implantable defibrillator surgeries on Medicare patients and estimate potential penalties under the False Claims Act. Prosecutors of the DOJ have been investigating for over two years as to whether or not some Medicare patients have received implanted defibrillators outside of CMS rules on when these devices can be used.
Within the past year, whistleblowers inside of American corporations are divulging information about employers that could give them part of multi-million dollar penalties won by financial regulators under a Securities and Exchange Commission program. Whistleblowers are exposing more than simply names; they are turning over documentation including e-mails and audio recordings because they are motivated by cash and the turning in of wrongdoers.
Omnicare, Inc., based in Covington, Kentucky, agreed to settle a lawsuit alleging it submitted false claims for reimbursement to government health insurers and paid a “kickback” when it bought the pharmacy company, Total Pharmacy Services, LLC. Omnicare is a company that supplies drugs to nursing homes.
In Paducah, Kentucky, a False Claims complaint has been settled regarding landfill operations. The qui tam complaint, United States ex rel. Vander Boegh v. Bechtel Jacobs Company, LLC, was filed by C.