The False Claims Act: A Gold Mine for the Federal Government and Whistleblowers

The Federal False Claims Act (“FCA”) creates civil liability for entities that falsely or fraudulently contract with the government to provide services or goods in exchange of federal funds.

Since 1986, the Department of Justice (“DOJ”) has recovered approximately $34 billion from the healthcare industry under the FCA. In fiscal year 2016 alone, nearly $2.6 billion was recovered in health care cases. The primary reason for the massive recoveries is a provision that allows “whistleblowers” to share as much as 30% of the treble damages and mandatory penalties awarded under the law.

The FCA imposes civil liability on any person who: (i) knowingly presents or causes to be presented a false or fraudulent claim; or (ii) knowingly makes, uses, or causes to be made or used a false record or statement material to a false or fraudulent claim. An entity that violates the FCA is liable to the government for three times the amount of actual damages the government sustains, in addition to a civil penalty ranging between $10,957 and $21,916 per claim.

During the past three years, the Florida Department of Health (“DOH”) has been extremely active investigating hospices and home health agencies for violations of the False Claims Act. Under Medicare Part A, payments will be made only if the individual’s attending physician and/or the medical director certify in writing that the services are medically necessary.

Settlements Can Reach Tens of Millions

In 2016, Evercare Hospice & Palliative Care settled for $18 million with the DOH to resolve FCA allegations that it submitted claims to Medicare for patients not eligible for hospice because:

  • they were not terminally ill;
  • medical records did not support terminal prognosis; and
  • Evercare allegedly discouraged physicians from discharging ineligible patients.

In 2014, Amedisys settled for $150 million for allegedly billing Medicare for nursing and therapy services that were medically unnecessary or provided to patients who were not homebound, and otherwise misrepresented patients’ conditions to increase Medicare payments.

How to Avoid False Claims Act Liability?

In order to avoid False Claims Act liability, healthcare providers — including hospice and home health providers — are obligated to:

  • Comply with applicable regulatory requirements in order to be reimbursed by Medicare
  • Be knowledgeable of the statutes, regulations, and guidelines for coverage of Medicare services
  • Inform its employees and medical directors on the requirements for Medicare coverage of hospice and home health care

Healthcare providers need to implement compliance programs that monitor areas of risk such as performing unnecessary or excessive services; upcoding; failure to document patient care; worthless services; retention of an overpayment from a government health care program; and violations of the Anti-Kickback Statute and Stark Laws.

Physician certifications must be accompanied by clinical information and other documentation. Under Medicare Part A, a hospice needs to be certain that the physician’s clinical judgment can be supported by clinical information and other documentation that provide a basis for the certification of six months or less if the illness runs its normal course. A signed certification, absent a medically sound basis that supports the clinical judgment, is not sufficient for application of the hospice benefit under Medicare.

Let Chapman Law Group Be Your Guide

We at Chapman Law Group are solely focused on healthcare matters, such as fighting FCA allegations and developing compliance programs for healthcare practices, including regulated facilities such as hospice and home health providers.

Whether you practice in Michigan (Detroit, Dearborn, Troy, Ann Arbor and Grand Rapids, among many more regions), and Florida (including the metro areas for Miami, Orlando, Tampa, West Palm Beach and Jacksonville), or anywhere else in the U.S., we are ready to help you. Contact us today to learn more.

Need an Attorney? Contact us now!

.

  • This field is for validation purposes and should be left unchanged.

Leave a Reply

Your email address will not be published. Required fields are marked *

Send this to a friend