Recent 2020 False Claims Act Settlements

2020 has been and challenging year, but it has not stopped whistleblowers from reporting fraud. Below are some recent False Claims Act settlements:

Resmed Corp, a manufacturer of durable medical equipment, agreed to pay more than $37.5 million the government regarding false claims allegations of paying kickbacks to equipment suppliers, sleep laboratories, and other health care providers. The False Claims Act complaint alleged Resmed Corp encouraged patient referrals by providing free patient outreach services and below-cost equipment and installation, as well as arranging for, and guaranteeing payments due on, interest-free loans for the purchase of its equipment. See Press Release, Office of Pub. Affairs, U.S. Dep’t of Justice, Resmed Corp. to Pay the United States $37.5 Million for Allegedly Causing False Claims Related to the Sale of Equipment for Sleep Apnea and Other Sleep-Related Disorders (Jan. 15, 2020), https://www.justice.gov/opa/pr/resmed-corp-pay-united-states-375-million-allegedly-causing-false-claims-related-sale.

Patient Services Inc., a patient co-pay foundation, agreed to pay $3 million settle a False Claims Act action for conspiring with pharmaceutical manufacturers to illegally pay patient copayments. Allegations included Patient Services operated a fund that directed money from the pharmaceutical manufacturers to patients to cover co-payments for drugs sold by those companies. See Press Release, Office of Pub. Affairs, U.S. Dep’t of Justice, Patient Services Inc. Agrees to Pay $3 Million for Allegedly Serving as a Conduit for Pharmaceutical Companies to Illegally Pay Patient Copayments (Jan. 21, 2020), https://www.justice.gov/opa/pr/patient-services-inc-agrees-pay-3-million-allegedly-serving-conduit-pharmaceutical-companies

Guardian Elder Care Holdings and related entities agreed to pay $15.4 million to resolve FCA allegations for illegally billing overbilled Medicare and the Federal Employees Health Benefits Program for medically unnecessary rehabilitation therapy services. See Press Release, Office of Pub. Affairs, U.S. Dep’t of Justice, Guardian Elder Care Holdings and Related Entities Agree to Pay $15.4 Million to Resolve False Claims Act Allegations for Billing for Medically Unnecessary Rehabilitation Therapy Services (Feb. 19, 2020), https://www.justice.gov/opa/pr/guardian-elder-care-holdings-and-related-entities-agree-pay-154-million-resolve-false-claims.

Atlanta-based hospital system agreed to pay $16 million to resolve FCA allegations. The hospital was accused of illegally billing federal health care programs for inpatient care, where they received a higher reimbursement rate, instead of the less costly outpatient care rate. See Press Release, U.S. Atty’s Office for the Northern Dist. of GA, Atlanta hospital system to pay $16 million to resolve false claims allegations (June 25, 2020), https://www.justice.gov/usao-ndga/pr/atlanta-hospital-system-pay-16-million-resolve-false-claims-allegations.

Miller Law Group regularly represent whistleblowers under the False Claims Act who report fraud against government programs.

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