A False Claims Act lawsuit filed against several hospitals over allegations of illegal kickbacks has been brought to an end in a $8.6 million whistleblower settlement.
The whistleblower settlement comes in response to a lawsuit filed against four Texas hospitals, all affiliated with HCA Holdings Inc. The lawsuit, taken up by the Department of Justice, alleged that these hospitals illegally accepted kickbacks from ambulance companies in exchange for Medicare and Medicaid referrals. The whistleblower settlement is not actually a determination of liability.
According to the allegations, ambulance transport would be heavily discounted for the hospitals, or even free for these hospitals. Then, in exchange, Medicare and Medicaid patients were referred to the ambulance companies.
The whistleblower settlement deal brings two FCA complaints to a close, initially filed back in 2011, bringing attention to the Department of Justice.
“This settlement emphasizes that both sides of any arrangement where remuneration is paid in exchange for health care referrals are responsible for their improper actions—even entities that do not actually bill Medicare or Medicaid for the services,” said Gregory Demske, the chief counsel of the Office of Inspector General for the U.S. Department of Health and Human Services. Demske noted that it is fairly unusual for the alleged kickback recipients to be targeted in this kind of lawsuit in addition to the alleged kickback payors.
This is not the first such FCA whistleblower settlement in recent years. Ambulance companies in California were hit with a whopping $11.5 million whistleblower settlement in 2015. Back in 2006, a Texas ambulance company had to pay $9 million in a similar settlement agreement.
Texas ambulance companies in particular, like those involved in this case, have had issues with Medicare and Medicaid fraud over the years. A few bans have been put in place in an attempt to control the issue.
Filing a Whistleblower Lawsuit
Whistleblowers are individuals who report the fraud and illegal activities against the government of their current or former employers. Many employees choose to come forward as whistleblowers because they do not feel right about their employer’s actions. A whistleblower lawsuit can be filed while working at the company, but can also be filed after having left the company.
While a person considering becoming a whistleblower may be worried that they will face retaliation for their actions, there are laws in place to protect whistleblowers from such retaliation. Plus, the whistleblower is typically given a substantial reward—often between 15 and 30 percent of the money recovered in the subsequent whistleblower lawsuit.
If you believe you have witnessed some kind of illegal activity against the government by your current or former employer, such as illegal ambulance kickbacks, you may be able to file a whistleblower lawsuit (also known as a qui tam lawsuit) on behalf of the government. Whistleblower lawsuits like this can reach substantial whistleblower settlement amounts.
In general, whistleblower and qui tam lawsuits are filed individually by each plaintiff and are not class actions. Whistleblowers can only join this investigation if they are reporting fraud against the government, meaning that the government must be the victim, and that the alleged fraud should be a substantial loss of money.
Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. The attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual qui tam lawsuit or whistleblower class action lawsuit is best for you. Hurry — statutes of limitations may apply.
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If you believe that you have witnessed fraud committed against the government, you may have a legal claim. Whistleblowers can only join this investigation if they are reporting fraud against the government, meaning that the government must be the victim, and that the alleged fraud should be a substantial loss of money.
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