In a recent federal whistleblower lawsuit filed against Vista Hospice Care Inc., the company had allegedly tried to block witnesses from coming forward in its latest bid in the litigation.

The company recently pleaded with a Texas federal court to reject two government whistleblowers who have similar allegations in another case of their own, stating that it presented an unfair advantage to the plaintiffs.

The whistleblower lawsuit alleged that the company had created fake referrals to increase their enrollment rates, and ultimately committed Medicare and Medicaid fraud.

Whistleblower Misty W. is calling for two other whistleblowers to testify against Vista Hospice, because their financial stake in the current litigation was relevant.

Misty stated that these two whistleblowers were also former VistaCare employees who had made allegations in a separate claim, which was later dismissed before striking a relator agreement with Wall. The agreement stated that they were entitled to any future share a potential settlement it come.

VistaCare has heavily combated this move, stating that Misty is exchanging testimony for payment. Misty argues that such arrangements are common in federal whistleblower lawsuits, and is passable as long as the financial payout is not the specific motivation for the other witnesses testifying.

Essentially, Misty said there is no proof that former VistaCare nurses Barbara H. and Elizabeth L. are only testifying for a portion of the potential whistleblower payout.

Misty’s lawyers stated it was unlikely that VistaCare will be successful in barring the other whistleblowers, with the government encouraging relator arrangements because it makes these cases more efficient.

Overview of Whistleblower Allegations

Misty’s whistleblower lawsuit was filed in 2007, when she allegedly witnessed her former employer of Medicare and Medicaid fraud from 2003 to 2005.

During this time, she alleged that VistaCare had forged doctors’ signatures and had allegedly persuaded doctors to make false referrals to increase the enrollment rate for the company. Misty also accused VistaCare of denying service to patients who needed them to maximize profits, and eventually fired Misty for complaining about this practice.

Previously in 2011, a federal judge had tossed out the majority of her whistleblower claims, but maintained the allegations of VistaCare providing kickbacks to patients who agreed to stay enrolled in the hospice program. The court had ruled her wrongful termination allegations were barred based on the timing of Misty’s claim.

As mentioned previously, Barbara and Elizabeth had filed a similar whistleblower claim in 2010 against the company and was later transferred to the same Texas district court as Misty’s lawsuit.

As federal government whistleblowers to this Medicare and Medicaid fraud case, Misty and the others may be eligible to be rewarded between 15% to 30% of whatever damages recovered.

Whistleblowers are the witnesses that come forward to report government fraud they witnessed, which has recovered billions of taxpayers dollars and for the federal government.

If you have witnessed fraud against the government, such as Medicare fraud, Medicaid fraud, or other healthcare billing fraud, you may be eligible to file a whistleblower lawsuit and potentially claim up 15-30% of the settlement. A federal whistleblower attorney can review your case and determine if you qualify to file a claim.

This Federal Whistleblower Lawsuit is Misty W. v. Vista Hospice Care Inc. et al., Case No. 3:07-cv-00604, in the U.S. District Court of Northern Texas.