False Claims Act Update & Alert
Taxpayers Against Fraud Education Fund | Washington, D.C. | WWW.TAF.ORG
August 24, 2009. . ![]()
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Quest Diagnostics Pays
Another $12.5 Million
Quest Diagnostics has agreed to pay an additional $12.5 million to settle state claims concerning the accuracy of diagnostic tests manufactured, marketed and sold from 2000-2006. This state settlement follows in the wake of a federal FCA settlement for $302 million paid in April. >> To read more
Covenant Pays $4.5 Million
Covenant Medical Center of Waterloo, Iowa has agreed to pay $4.5 million to settle a False Claims Act case in which the hospital was charged with violating the Stark Law which prohibits paying kickbacks to doctors for referrals. Covenant violated the Stark Law by paying five doctors unreasonably high compensation which made themamong the most highly paid hospital-employed physicians in the U.S. >> To read more
Jim Sheehan Seeks Dead People
New York Medicaid Inspector General Jim Sheehan is doing more than going after doctors, pharmacists, and nursing homes for billing the state for billing services for dead people: he's also going to "name and shame" the offenders on his office's web site. >> To read more
Convicted Murderer Pleads Guilty to Medicare False Claims
Convicted murderer Guillermo Denis Gonzalez was released from prison in 2004. In 2006 he bought a Medicare-licensed healthcare equipment company for $18,000, and proceeded to bill Medicare for over $500,000 in goods and services never delivered. Notes The Miami Herald, "Gonzalez's case isn't that unusual in the underworld of Medicare fraud." >> To read more
GPOs Under the Glass
Senators Herb Kohl (D-WI), Bill Nelson (D-FL) and Charles Grassley (R-IA) have sent a letter to the seven biggest group purchasing organizations (GPOs) to ask about their business practices. The question is whether companies which control the $60 billion a year market for hospital supplies need a special "safe harbor" provision for kickbacks.>> To read more
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