Prime Healthcare Sued Under False Claims Act

Prime Healthcare Services Inc. (PHS) is being sued by an employee whistleblower, Karin Berntsen, for allegations under the False Claims Act that they knowingly falsified patients’ admission information, Law360 announced earlier this month.

PHS allegedly directed hospital staff to falsify patients’ diagnoses in order to charge the highest amount to Medicare and Medicaid. PHS also refused to release patients to post-acute care centers so they could further their profits. It is further alleged that PHS bought failing hospitals and enhanced their revenue by having those hospitals engage in similar fraudulent practices. PHS allegedly cost Medicare and Medicaid around $50 million in reimbursements.

The lawsuit was originally filed by Karin Berntsen, a former PHS employee, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. The government has elected not to intervene in this case, and Berntsen could receive up to 30 percent of the settlement, if there is one.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.