Government recovers $2B+ in healthcare FCA actions for 5th year

Recoveries involving false claims against healthcare programs made up a significant portion of the federal government's total $5.7 billion in civil fraud recoveries in 2014, according to a report from the law firm of Bass, Berry & Sims.

The federal government recovered $2.3 billion in enforcement actions related to false claims against federal healthcare programs in 2014, marking the fifth consecutive year that segment of False Claims Act-related recoveries exceeded $2 billion.

There were more than $300 million in false claims-related judgments and settlements against hospitals in 2014, according to the report.

Qui tam, or whistle-blower, lawsuits are serving as the driving force behind the government's recoveries. Whistle-blowers filed more than 700 FCA lawsuits in 2014 and took home more than $435 million — nearly $100 million more than the preceding year — as their portion of settlements and judgments.

"As the entire healthcare industry is going through a period of unprecedented change, we are witnessing intense scrutiny of healthcare organizations as it relates to alleged fraud in federal healthcare programs," said Brian D. Roark, head of Bass, Berry & Sims' Healthcare Fraud Task Force. "We don't expect this enforcement trend to slow down any time soon."

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