A Louisiana-based healthcare management company has agreed to settle a whistle blower lawsuit raising allegations regarding false claims made against the government.

Allegiance Healthcare, based in Shreveport, has agreed to pay $1.7 million in a whistle blower lawsuit to resolve allegations that they made false Medicare claims to the government.

The Northwest Arkansas Democrat Gazette reports, “According to an announcement from the department, Shreveport-based Allegiance Health Management Inc. and four hospitals it owns and operates were accused of submitting and causing other hospitals to submit claims for reimbursement from Medicare for services that were not medically reasonable or necessary.”

Essentially, Allegiance has been accused of billing the government via the hospitals it owns for things that weren’t medically necessary or for services not even given.

Besides Allegiance Healthcare Management, Inc., this whistle blower lawsuit names other defendants including Allegiance Behavior Health Center of Plainview, Texas; Allegiance Specialty Hospital of Kilgore, Texas; North Metro Medical Center, also known as Allegiance Hospital of North Little Rock; and Sabine Medical Center, also known as Allegiance Hospital of Many, La.

The Department of Justice alleges that in 2005, Allegiance began partnering with southeast-based hospitals to offer outpatient psychotherapy services. According to the Gazette, “Allegiance established an outpatient counseling center at each of the hospitals, where Allegiance employees were responsible for identifying potential patients, creating patient treatment plans and performing intensive outpatient psychotherapy services.”

Allegedly, Allegiance provided psychotherapy services to patients who weren’t eligible for Medicare services. This whistle blower lawsuit settlement resolved those DOJ allegations.

False Claims Act: Whistle Blower Lawsuit

This whistle blower lawsuit was filed under the False Claims Act. The False Claims Act helps to protect the government from fraud by allowing citizens to file a whistle blower lawsuit on behalf of the government if they see evidence of fraudulent behavior.

This whistle blower lawsuit is called a qui tam lawsuit. Many of those who file a whistle blower lawsuit are employees or former employees with evidence of wrong doing by a business.

The False Claims Act protects citizens who bring forth a whistle blower lawsuit from retaliation by their employer or the targeted business. There are remedies under the False Claims Act for those who believe the business has retaliated against them.

This includes all relief necessary for those who have been demoted or discharged because of their participation in a qui tam whistle blower lawsuit. The individual may be entitled to their old job back if they have been fired, they can receive back pay and may have their attorney’s fees paid for.

If a citizen files a whistle blower lawsuit on behalf of the government, that person may also be rewarded financially. If a settlement or judgment is reached, that individual may get between 15 and 25 percent of the amount recovered in the whistle blower lawsuit.

If you believe you have witnessed an employer or business commit fraud against the government, you may be able to file a qui tam whistle blower lawsuit.