Wednesday, June 30, 2010

Cochlear Americas to Pay U.S. $880,000 to Settle False Claims Act Allegations

Cochlear Americas, a cochlear implant manufacturer that is a subsidiary of Cochlear Limited, will pay the government $880,000 to settle allegations that it violated the Anti-kickback Act and False Claims Act.

Allegedly, Cochlear Americas provided illegal compensation to physicians who prescribed for Medicare and Medicaid patients the company’s cochlear implant systems, in order to induce such prescriptions.  This action constitutes a violation of the Anti-kickback Act and allegedly resulted in False Claims to be submitted to Medicare and Medicaid. 

This lawsuit was filed by whistleblower Brenda March under the qui tam provisions of the False Claims Act in 2004.  Ms. March will receive $176,000 from the settlement. 

Click here to read the full article, “United States Settles False Claims Act Allegations With Cochlear Americas for $880,000"

Tuesday, June 29, 2010

Office Depot to Pay Florida $4.5 Million to Settle Whistleblower Investigation

Attorney General Bill McCollum of Florida has announced a $4.5 million settlement with Office Depot, after the company allegedly overcharged state agencies for office supply products.  The settlement resolves an investigation by the state, which was initiated based on the allegations of a qui tam lawsuit. 

The whistleblower, David Sherwin, was a former manager for Office Depot.  Sherwin’s testimony has led to investigations in several other states, including Missouri and North Carolina.

Click here to read the full story, “Florida AG Settles With Office Depot"

Heart Device Manufacturer, Hospitals Pay Nearly $4 Million for Alleged Kickback Scheme

Minnesota-based heart device manufacturer, St. Jude Medical Inc., and two hospitals have agreed to pay the United States a total of $3,898,300 to settle allegations that St. Jude paid illegal kickbacks to the hospitals to induce them to purchase equipment from St. Jude’s.  According to the government, the kickback scheme led to violations of the federal False Claims Act by causing the submission of false claims to federal health care programs.

The settlement calls for St. Jude to pay $3,725,000, while Parma Community General Hospital in Parma, OH, will pay $40,000, and Norton Healthcare of Louisville, KY will pay $133,000. 

The false claims allegations were first raised by a whistleblower, Jerry Hudson, in a qui tam lawsuit.  Mr. Hudson will receive $640,050 of the amount recovered. 

Click here to read the Department of Justice press release, “Heart Device Manufacturer in Minnesota and Hospitals in Ohio & Kentucky to Pay Nearly $4 Million to Resolve Fraud Allegations"

Friday, June 04, 2010

Bell Helicopter Textron Inc. to Pay U.S. an Additional $3.7 Million for Overcharges

Bell Helicopter Textron Inc. will pay the U.S. an additional $3.7 million to resolve civil claims regarding overcharges to the U.S. government, bringing their total settlement to $16, 570,018. 

The Army and other government agencies contract with Bell to buy helicopters and related goods and services.  In 2004 the company notified the Defense Department’s Inspector General that its billing of certain transactions with its subsidiaries, divisions, and affiliated companies had resulted in the government being overcharged.  In 2006 Bell submitted a report disclosing its conduct and financial impact, and paid the government $12.9 million.

Bell later submitted additional reports detailing similar transactions with Bell Helicopter Textron Canada Limited that also resulted in overcharges.  The company has agreed to pay an additional $3.7 million to resolve claims that the U.S. may have as a result of this conduct. 

Click here to read the full article, “Bell Helicopter Textron Inc. to Pay Total of $16.5 Million for Overcharging the United States"

Thursday, June 03, 2010

Health Alliance of Greater Cincinnati, Christ Hospital Pay $108 Million in Qui Tam Settlement

The Health Alliance of Greater Cincinnati and its former member hospital, The Christ Hospital, will pay the United States $108 million to resolve claims that they violated the Anti-Kickback Statute and the False Claims Act.

Allegedly, The Christ Hospital encouraged cardiologists to refer patients to their facilities by limiting the opportunity to work at their Heart Station to those cardiologists who made such referrals and rewarded doctors with high referral rates by giving them greater percentages of time at the station.  Working at the Heart Station enables doctors to generate additional income by billing for the patients they treat there.

The government maintains that this pay-to-play scheme violated the federal Anti-Kickback Statute, which prohibits hospitals from offering a physician anything of value in return for patient referrals.  The government also alleges that the claims submitted to Medicare and Medicaid as a result of the kickback scheme violated the False Claims Act.

This lawsuit was filed by a whistleblower under the qui tam provisions of the False Claims Act.  The whistleblower, Dr. Harry Fry, a cardiologist who was a former employee at The Christ Hospital, will receive $23.5 million from the settlement. 

Click here to read the full article, “The Health Alliance of Greater Cincinnati and The Christ Hospital to Pay $108 Million for Violating Anti-Kickback Statute and Defrauding Medicare and Medicaid"

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