False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
September 17, 2008| ![]()
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NY Hospital to pay $88 Million
Staten Island University Hospital (SIUH) has agreed to pay the United States and the state of New York over $88.9 million to settle claims the hospital defrauded Medicare, Medicaid and the military’s health insurance program. This is the third time SIUH has been nailed for fraud. Previous cases were settled for $45 million (1999) and $76.5 million (2005). >> To read more
Abbott Pays $28 Million to TX
Abbott Laboratories has agreed to pay $28 million to settle Medicaid-fraud charges under the Texas False Claims Act. Abbott misreported drug prices to Medicaid, causing the state to significantly overpay for prescription drugs. The Texas case was brought by Ven-a-Care of the Florida Keys, which has previously won FCA cases against Schering-Plough/Warrick Pharmaceuticals, Dey, Boehringer Ingelheim/Roxane Laboratories, Baxter Healthcare Corp., and Fresenius. The U.S. Department of Justice has joined a similar case, also against Abbott, brought by Ven-a-Care.
>> Texas settlement with Abbott
Healthfirst to Pay NY $35 Million
Healthfirst, the largest Medicaid Managed Care provider in New York, will pay $35 million to settle allegations it violated state and federal contracts by paying bonuses to employees based on the number of people they enrolled in managed care. >> To read more
Maxwell Case Reversed
The same week the Dept. of Interior's Inspector General issued a report noting some Minerals Management Service employees in Denver were accepting gifts and having sex with representatives of the oil and gas industry, the 10th U.S. Circuit Court of Appeals reversed a lower court decision throwing out a $30 million jury verdict against Kerr-McGee for knowing underpayment of royalties. >> To read decision
IRS Told of Bond Fraud
A whistleblower is pointing the Internal Revenue Service to a massive tax-dodge taking place in the bond market. The alleged scam involves one-year bonds with high interest rates which make no economic sense unless unearned and illegal tax write-offs are factored into the deal. >> To read more
US Files Suit Against Boeing
The United States has filed suit against Boeing for unlawfully inflating the price it charged the U.S. Air Force for the Towed Decoy System for the B-1 bomber. >> To read more
Counties Can Sue
Over Drug Pricing
The Ninth Circuit Court of Appeals has ruled that countries can sue drug companies for illegal price-gouging when they misrepresent the Average Wholesale Price of prescription drugs. >> To read more
Trade Group Burn Notice
The Indiana Hospital & Health Association has sent out a letter to hospitals warning them that investigators from the Dept. of Justice and HHS are making unannounced visits to Indiana hospitals to determine if there has been improper billing related to kyphoplasty spinal procedures. >> To read more