False Claims

Improved Essays
• Submission of a claim for health or medical care services that were never carried out.
• Submission of a claim for services provided to non-existent patients or ghost patients.
• Submission of false service records or samples so as to show a great performance
• Up-coding – submission of a claim for a more expensive service than that which was performed.
• Submission of claims for services or treatments that are not medically necessary.
• There is also the use of double billing. This is just charging the government multiple times for just a service.
False Claims Settlement in Healthcare Setting Every health practitioner and healthcare administrator is familiar with the False Claims Act. If served with a lawsuit under this Act, the survival
…show more content…
Some of the top FCA cases are briefly described below:
GlaxoSmithKline – this pharmaceutical company pleaded guilty in the year 2012 and agreed to pay a whopping sum of $3billion to resolve the criminal and civil liability brought against it. This lawsuit was brought about by the unlawful promotion of a prescription drug the company engaged in, and because the company failed to report the safety data of “Avandia” – a diabetic drug, and also false price reporting. Till date it has remained the largest payment ever made by a drug company (CITATION). GlaxoSmithKline paid for making false and misleading reports about Avandia’s safety.
• Johnson & Johnson – this global healthcare giant paid more than $2.2 billion for resolution of criminal and civil liability from allegations that they were promoting drugs that were not approved for safe uses by the Food and Drug Administration (FDA). Also, for the payment of kickbacks to physicians. Thus, they pleaded guilty to misbranding an antipsychotic drug
…show more content…
The company paid $745 million for 5 allegation resolutions, in the same way and manner it billed the U.S government for healthcare costs. The company also paid kickbacks to physicians so as to get referrals of Medicare and Medicaid patients to its facilities. Out of the $745, $95 million went to the resolution of civil claim which arose from the company’s lab billing practices, like billing to Medicare and Medicaid lab tests that were unnecessary medically, and even lab tests that were not ordered by the physician. $403 million went to the resolution of civil claim which arose from up-coding. $50 million went to the resolution of civil claims from illegally claimed marketing and advertising cost, which was disguised as community education. $90 million for the resolution of civil claims in respect of costs incurred in purchasing a home health agency. Lastly, $106 million went to the resolution of civil claims for billing Medicare, Medicaid and TRICARE for giving home visits to those who were not qualified.
Results
The False Claims Act has been effective in the fight against fraud because they give ordinary citizen whistleblowers the privilege to file a lawsuit in all taxpayer’s name. The False Claims Act of 1986 helped the government recover millions of dollars (CITATION). There has been lots of recovery of

Related Documents

  • Improved Essays

    The case of Stern v. Lucy Webb Hayes (1984) was a class action lawsuit in which M. Stern and the patients of Sibley Memorial Hospital sued the Lucy Webb Hayes National Training School for Deaconesses and Missionaries, five financial institutions, and five members of Sibley Memorial Hospital’s Board of Trustees. Plaintiffs alleged the defendants conspired to monetarily benefit from the financial management of the hospital through use of the financial institutions to which they were affiliated. Plaintiffs also alleged breach of fiduciary duty by trustees. During this case the plaintiffs attempted to establish the conspiracy they had alleged by presenting specific incidences to which questionable financial activity occurred.…

    • 312 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    James Tanner The Immortal Life of Henrietta Lacks Timeline 1952 First immortal cells cultured. Collected from Henrietta's cervix. Named HeLa cells.…

    • 667 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    The highlighted language is a broad and material exception to the operation of Section 2.6. SelectCare is prohibited from denying a medically necessary claim under circumstances where good cause existed for the lack of prior authorization. This exception prevents SelectCare from unreasonably shifting the costs of its member’s medically necessary services to the Hospitals when the Hospital is not at fault. As discussed more fully below, good cause existed for the lack of authorization on each of the claims at issue. Accordingly, SelectCare’s denial of these medically necessary claims was unreasonable and payment should be made to the Hospitals.…

    • 441 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    The IG MPI Investigations Division conducts investigations of Medicaid providers regarding allegations of Fraud, Waste and Abuse in the Medicaid program. Referrals can come from: • Medicaid provider complaints. • Self-Initiated referrals based on information obtained from data queries, sister agencies, provider and community outreach or other external sources. • Financial audits which determine funds were not used as intended or which identify overpayments and disallowed costs.…

    • 585 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Whose Hospital Case Study

    • 1133 Words
    • 5 Pages

    Case Q: Whose Hospital? Background of the situation: In June of 1979, the medical staff at Brendan Hospital held a mass meeting at the hospital to discuss various allegations against CEO, Don Wherry. A petition was signed by half the medical staff and by half the employees of the hospital at the mass meeting.…

    • 1133 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Stepford Hospital Case

    • 1547 Words
    • 7 Pages

    With the inception of the Patient Protection and Affordable Care Act (ACA) the Centers for Medicare & Medicaid Services (CMS) have really made even more of an effort to scale back on physician based Medicare/Medicaid fraud. These fraudulent cases come in all different manners from physicians and their practices knowingly defrauding the government to ongoing fraud which was never caught or knew they were committing fraud. Unfortunately CMS possesses little to no leniency for the infractions committed with most penalties coming in the monetary form. My task with this assignment is to break down a series of questions with specific answers as they pertain to our example and specific federal statutes (Federal Anti-Kickback Statute and Regulations,…

    • 1547 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    Example of an invalid claim is when a medical office list incorrect provider number of referring doctor. Dirty claim is a claim that has errors, because a medical office provides inaccurate revenue codes when filing a claim. Delete claim is a claim that is canceled or voided by Medicare fiscal intermediary an example of a delete claim is when a CMS 1500 02/12 claim is missing demographic information like a patient’s age or…

    • 961 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    A 1. In this paper I will be comparing the overall healthcare systems between the United States and that of Great Britain. A 2. In the United States we have private healthcare which each individual person has to pay for, one way or another. There are some government programs such as Medicare, Medicaid, Veterans health administration and Children's Health Insurance Program that help supplement healthcare but there are strict qualifications that must be met and not everyone may qualify for it.…

    • 688 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Novartis Compliance Cases

    • 114 Words
    • 1 Pages

    In the past week the US Department of Justice has filed lawsuits twice against Novartis. The Department stated Novartis paid kickbacks to boost prescription which led the federal healthcare programs to pay for medicines based on false claims. The feds have been making similar allegations towards drugmakers for the past 10 years. Novartis would pay people off by taking them to expensive dinners or fun activities. Three years ago Novartis paid $422.5 million in penalties and pleaded guilty to a misdemeanor for promoting its Trileptal epilepsy medication and several other drugs.…

    • 114 Words
    • 1 Pages
    Decent Essays
  • Decent Essays

    Why Review your own Health Plan's Explanation connected with Benefits Have people ever been surprised that you owe with regard to the medical procedure considering that the probably you thought the insurance paid your own whole amount? in fact, and so surprised so that you can handle The item coming from ignoring your own multiple statements, phone calls and the explanation of benefit statement from the health plan (which is usually through which It many begins)? What's on the EOB?…

    • 548 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    Medicare Advantage Cases

    • 653 Words
    • 3 Pages

    At least six whistle-blowers have sued health plans because they said that the plans attempted to boost their profits by tampering with the risk scores. Among the first to settle was The Sewell. Sewell's attorney, Mary Inman said, "This is the largest whistle blower settlement involving health insurers' manipulation of their members' risk scores," said She also said that it "...sends an important signal to health insurers that the government is serious about risk adjustment fraud." In a statement, Freedom and Optimum corporate counsel Bijal Patel denied any wrongdoing.…

    • 653 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    Medical Necessity Analysis

    • 1271 Words
    • 6 Pages

    In order to discuss medical necessity in the current era of health information technology, we must have a comprehensive knowledge and understanding of medical necessity. Most of this article focuses on explaining medical necessity and towards the end includes some thoughts on how medical necessity relates with health information technology. The meaning of medical necessity is different for providers, physicians, courts, government/private insurers, or consumers. Medical necessity is used for managed care plans as a tool to deny or approve necessary care.…

    • 1271 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    American health care system is complex and controversial in nature today than in the past decades. The hidden cost and poor patients care are making the system failing to millions of Americans who have the greatest health needs and fewest resources to foot the bill. Americans deserve a healthcare system that provides quality care at affordable cost to all it citizens. Although thousands of solutions have been proposed by health policy management, medical experts, and insurance companies to help serve the exponentially growing number of patient needs to Medicare cost. Sadly, to say all efforts have been ineffective resulting in great variations of out of pocket outcomes and high cost (Conklin, 2002; Peter, 2016; Mund, 2012).…

    • 1000 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Healthsouth Scandal Essay

    • 2186 Words
    • 9 Pages

    However, the corporation was caught by selling 75 million dollars in shares a day before the company experienced a huge loss, catching the attention of U.S. Securities and Exchange Commission (SEC) . A company which was known for its ambulatory surgery and rehabilitative health care services throughout the United States fabrics one of the most inconspicuous false impressions known to the corporate world. Carefully using deceptions of the Generally Accepted Accounting Principles (GAAP) such as materiality, conservatism, and reliability, verifiability, and objectivity as well as ethics, the company was able to improve their initial appearance. HealthSouth failing to meet the materiality, conservatism, and reliability, verifiability, and objectivity accounting principles as well as ethic standards meets its fall when the company is caught with conspiracy, security fraud, and money laundering carefully scattered along their financial statements and kept hidden by their dedicated employees. Corrupted management, originated financial statements, and falsified numbers all contributed to the history of HealthSouth’s…

    • 2186 Words
    • 9 Pages
    Great Essays
  • Great Essays

    Non-fault scheme are great both economically and timely, but they do not necessarily hold medical professional accountable. However, the medical industry and what it deals with makes that matter prevention far more complicated. The great divide between patients and doctors is only fostered by the threat of litigation. Fear of punishment, can be a deterrent, but cases of medical negligence are not simple as petty theft. Fortunately, in extreme circumstances, the New Zealand version of No fault allows for not only compensation via ACC, but also to pursue legal action against those involved.…

    • 1317 Words
    • 6 Pages
    Great Essays