Medicaid

January 31, 2014
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...
January 29, 2014
Saint Joseph Health System, Inc. has agreed to pay the U.S. Government $16.5 million to resolve allegations under the False Claims Act that they submitted false or fraudulent claims to the Medicare and Kentucky Medicaid programs for a variety of medically unnecessary heart procedures, the Justice Department announced today. Several doctors working at the Saint Joseph London...
January 17, 2014
BioScrip has agreed to pay $15 million to resolve allegations under the False Claims Act that they received kickbacks from Novartis in exchange for recommending refills to patients, the Department of Justice announced earlier this week. Novartis allegedly provided kickbacks to BioScrip, in the form of patient referrals and in the guise of rebates, in exchange for BioScrip...
December 19, 2013
Cardiologist Dr. Elie H. Korban (Korban) will pay $1.15 million to resolve False Claims Act allegations that he billed Medicare and Medicaid for medically unnecessary cardiac stent placements, the Justice Department announced today. Cardiac stents are mesh tubes placed in coronary arteries of patients to keep their arteries open during the treatment of coronary heart disease....
December 4, 2013
Caremark LLC (Caremark) has agreed to pay the government more than $4.2 million to settle allegations, under the False Claims Act, that they knowingly failed to reimburse Medicaid for prescription drug costs, the Justice Department announced earlier this week. Caremark is operated by CVS Caremark Corp., one of the largest pharmacy benefit management (PBM) company and...
October 22, 2013
Kmart Corporation has agreed to pay the United States and 32 participating states a total of $2.5 million to settle allegations of false prescription claims by its national pharmacy centers to government health insurance programs, the Federal Bureau of Investigation announced yesterday. Kmart allegedly violated the False Claims Act by billing government health care programs (...
May 31, 2013
Recent amendments to the federal False Claims Act have expanded whistleblower protections and increased penalties for violators.  The amendments came in the form of the federal Deficit Reduction Act, the Fraud Enforcement and Recovery Act, the Affordable Care Act, and the Dodd-Frank Act. California revamped its own False Claims Act earlier this year to bring it into...
May 17, 2013
In the largest drug safety settlement of its kind to date, generic drug manufacturer Ranbaxy USA Inc. pleaded guilty to felony charges relating to the manufacture and distribution of adulterated drugs, as well as violation of the False Claims Act, the U.S. Department of Justice announced this week.  Ranbaxy agreed to pay a criminal fine and forfeiture amounting to $150...
December 6, 2012
Healthpoint Ltd. and DFB Pharmaceuticals have agreed to pay up to $48 million to resolve allegations that Healthpoint caused false claims to be submitted to Medicare and Medicaid programs for a non-FDA approved skin ointment, Xenaderm.  The U.S. Department of Justice alleges that Healthpoint misrepresented Xenaderm’s regulatory status in its government reports and...