Recently, Laboratory Boston Heart Diagnostics Corporation was hit with a False Claims Act lawsuit, which the company has since settled for $26.7 million, a portion going to the whistleblowers who brought this issue to the attention of the government in the first place. The False Claims Act protects the government from fraud and allows private citizens to act as a “whistleblower” when they gain knowledge of fraudulent acts.

The lawsuit alleged that the lab had accepted patients in exchange for hospital referrals, violating both the Anti-Kickback Statute and the Stark Law. The lawsuit also alleged that the laboratory improperly billed federal healthcare programs for certain lab testing.

From 2015 to 2017, the FCA lawsuit claimed, Boston Heart allegedly created a coordinated effort with hospitals’ independent marketers to make payments to referring physicians in exchange for patient referrals, though they disguised these payments as investment returns. The lawsuit alleges that Boston Heart helped these marketers identify potential physicians.

“Paying kickbacks to doctors in exchange for referrals undermines the integrity of federal healthcare programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division in a statement. “We will hold accountable those who enter into unlawful agreements that harm taxpayers, corrupt doctors’ medical judgment, and subject patients to expensive and unnecessary testing.”

The kickback scheme was complex, according to U.S. Attorney Joseph D. Brown for the Eastern District of Texas. “This company created lots of complex relationships to try to hide what it was doing, and that is illegally paying kickbacks for medical referrals.

The law requires that medical decisions be made based on what is best for the patient, not on what financially benefits the healthcare provider. Doctors and hospitals need to understand that these kinds of violations will be pursued.”

Individuals can help the government identify when these kinds of violations are taking place. People who “blow the whistle” are often awarded a substantial portion of any settlement or award that comes from a whistleblower lawsuit for their part in bringing the matter to light—generally between 15 and 30 percent of the total amount. In this case, the whistleblowers received $4.36 million, or a little over 16 percent of the total $26.7 million award amount.

Filing a Whistleblower Lawsuit

If you have witnessed Medicare fraud or some other type of fraud against the government, either by your employer or another company, you may be able to file a claim on behalf of the government. Many whistleblowers may be worried about the ramifications that reporting their employer may have; however, there are anti-retaliation laws in place at both the federal and state level meant to protect whistleblowers from any sort of pushback they may receive.

Filing a whistleblower lawsuit, or a qui tam lawsuit can feel like a daunting prospect, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

The Whistleblower False Claims Act Lawsuit is Case No. 2:17-cv-02061, in the U.S. District Court for the Eastern District of California.

This article is not legal advice. It is presented
for informational purposes only.