Federal law does not require that recipients of federal reimbursement programs such as Medicare use such funds in any particular way, the report said, citing the U.S. Court of Appeals for the 2nd Circuit decision. Catholic Health could not therefore be sued under the False Claims Act.
Whistleblower Michael Quartararo had alleged the Benefits Conversion Statute precluded Catholic Health from diverting the funds, according to the report. It is the first ever ruling on the meaning of the Benefits Conversion Statute, the report said.
Becker’s has reached out to Catholic Health for further comment.
