“Relaxing the standards of causation and remuneration required under the Anti-Kickback Statute and False Claims Act … would embolden the relators’ bar to assert more meritless claims based on decisions that hospitals and their governing boards must make every day in managing their finances and operations,” the hospital groups wrote in a friend-of-the-court brief filed Dec. 5. “The consequence of overturning the district court’s well-reasoned opinion would be to vastly expand hospitals’ exposure to FCA suits, which are tremendously expensive to defend throughout a government investigation and litigation even when the suit is meritless.”
The case refers to a false claims suit filed against Darren Hathaway, MD, of South Michigan Ophthalmology and Oaklawn Hospital in Marshall, Mich.
The Michigan Health & Hospital Association, Kentucky Hospital Association, Ohio Hospital Association and Tennessee Hospital Association joined AHA in the brief.
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