CHS owes fees in $98M fraud case, court rules

Whistleblowers who helped the federal government reach a $98 million false claims settlement with Community Health Systems in 2014 can recover attorneys fees from the Franklin, Tenn.-based hospital operator, the Sixth Circuit Court of Appeals ruled Jan. 25, according to Bloomberg Law

Advertisement

The seven whistleblowers entitled to receive attorneys fees collaborated with federal prosecutors in a case against CHS over alleged improper hospital admissions. 

CHS argued the attorneys fees were barred by the False Claims Act’s first-to-file and public disclosure rules, which preclude lawsuits based on information that has already been disclosed and those related to an existing whistleblower suit. 

In reversing a decision by a Tennessee district court, the appellate court said the whistleblowers were entitled to attorneys fees because they each uncovered independent parts of a broad-reaching fraud case. Allowing the whistleblowers to recover fees encourages other whistleblowers to help the government in similar cases, the court said, according to Bloomberg Law

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Register to Attend Webinar

Reconsider What’s Possible: Enterprise RCM and the Pro-Fee Practice

Tuesday, July 28
11:00 AM - 12:00 PM CDT

Presenters: Garett Kreitz, Med-MetrixJohn Stefanowicz, Med-Metrix

Advertisement

Next Up in Legal & Regulatory Issues

Advertisement

Comments are closed.