Category: State False Claims Acts

Dialysis Center Agrees to Pay $4.36 Million to Settle Allegations that it Overbilled for Physician Services

On May 3, 2012, the U.S. Attorney’s Office for the Eastern District of Tennessee announced that a number of dialysis centers in the Knoxville, Tennessee area had agreed to pay $4.36 million to resolve allegations that they had violated the federal False Claims Act, the Tennessee Medicaid False Claims Act and other federal and state laws and regulations.

Kentucky Legislator Introduces False Claims Act Legislation

Kentucky’s Speaker of its House of Representatives, Greg Stumbo, announced that he was introducing false claims act legislation to give whistleblowers strong tools and incentives to expose misuse of state dollars.  Stumbo supported his legislation by pointing to other states, such as California and Texas, that have successfully prosecuted cases under their own false claims acts. 

Representative Berman Commemorates the 25th Anniversary of the False Claims Act Amendments of 1986

Influential in Securing House passage of the False Claims Act Amendments of 1986, Representative Howard Berman joins in the commemoration of its 25th anniversary. Since the False Claims Act was amended, the government has recovered over $30 billion in settlements and judgments in civil cases involving fraud against the government.

Merck Settles Massachusetts Medicaid Fraud Allegations for $24 Million—Total Recovery Now $47 Million

Merck & Co, Inc., the second largest drug manufacturer in the nation, agreed to pay $24 million to the Commonwealth of Massachusetts to settle allegations that it knowingly reported inflated drug prices to the Massachusetts Medicaid program.  The $24 million settlement is the largest single payment made to the Commonwealth for any one Medicaid fraud case in the state’s history,

KV Pharmaceutical to Pay $17 Million for Unapproved Drug Reimbursement

KV Pharmaceutical Company, the St. Louis parent corporation of the now defunct Ethex Corporation, has agreed to pay $17 million to the federal and state governments to resolve allegations that Ethex fraudulently received reimbursement for two of its drugs from federal healthcare programs. According to allegations made by relator Constance Conrad in U.S.

Pennsylvania Needs a False Claims Act to Fight Fraud

In an excellent op-ed piece written for the Lehigh Valley’s Morning Call, David Williams of Kline & Specter describes why Pennsylvania needs a False Claims Act to combat fraud against the state.  Citing a 2005 study by the Pennsylvania attorney general’s office, Williams notes that fraudulent activities have consumed more than ten percent of Pennsylvania’s healthcare costs. 

Big Apple Settles False Claims for $70 million

New York City has agreed to pay the federal government $70 million to settle claims that it allegedly overbilled Medicaid by improperly approving home care for elderly clients.  As part of the settlement, NYC admitted that it reauthorized treatment of a number of patients without having first obtained required assessments from doctors,

Medical Equipment Provider to Pay $600,000 for False Claims Act Violations

The U.S. Attorney for the Southern District of Indiana announced on October 19, 2011, that Premier Home Care, a durable medical equipment provider in Southern Indiana, had agreed to pay $600,000 to the United States and to the State of Indiana for violations of the False Claims Act.  This qui tam suit was filed in 2008 by a former Premier employee who alleged that the company violated the False Claims Act by falsely certifying its compliance with state licensing requirements when it used unlicensed personnel to set up respiratory ventilation machines for patients.

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