Sunday, April 29, 2007

Court Refuses False Claims Suit Appeal by University of Phoenix

The University of Phoenix has failed to win US Supreme Court review of a lawsuit against the Phoenix-based institution over student recruitment, according to KVOA Tucson.

The university wanted the justices to reverse a decision by a federal appeals court in favor of two former school counselors. The pair said their pay was based on the number of students they enrolled. The appeals court refused the for-profit university’s request to dismiss the case.

Former school counselors Mary Hendow and Julie Albertson sued under the False Claims Act, which allows citizens to go to court on behalf of the government to allege wrongdoing by a contractor. The government chose not to intervene in the suit against the University of Phoenix, instead reaching a settlement agreement in which the school did not admit any liability, says KVOA Tucson.

Click here to learn more about Phoenix False Claims suit.

Thursday, April 26, 2007

New York False Claims Act puts Fraudulent Health Care Companies on Notice

Corporate Crime Reporter predicts that a storm is brewing in New York State with the signing into law last week of a False Claims Act modeled after the federal whistleblower law. “White collar defense law firms might want to beef up their health care fraud practices in New York,” says the April 26, 2007 story. “And it’s not looking good for pharmaceutical companies and other health care providers who would seek to rip-off the government.”

Neil Getnick on Manhattan-based Getnick & Getnick is quoted in the article. Click the following link to read the full text of the story on the NYS False Claims Act.

Wednesday, April 25, 2007

Neil V. Getnick praises NYS False Claims Act

In a Letter to the Editor published in the Albany Times Union today, Neil V. Getnick predicted that the New York State False Claims Act, which was recently signed into law by Gov. Elliot Spitzer, will place the state in the forefront in fighting Medicaid fraud.

Getnick called the act “smart government at its best,” and said it is likely to set off a chain reaction of anti-fraud and whistle-blower statues all over the country. Click the following link to read the full text of Getnick’s letter at timesunion.com.

Tuesday, April 24, 2007

Medicaid Centers Issue FAQs on False Claims Act for Employee Education

President Bush signed into law the Deficit Reduction Act (the “DRA") in 2005.  Among the most noteworthy provisions included in the DRA is a provision that requires employee education about the False Claims Act ("FCA") and applicable laws that protect, and even reward, employees who act as whistleblowers, according to Juvans Health Law Update.

The DRA specifically requires entities that receive or make annual payments of at least $5,000,000 pursuant to any state Medicaid program to establish written policies for employees that explain the provisions of the FCA, any state false claims laws and the applicable administrative remedies. The policies must also include a description of whistleblower protections and an explanation of internal policies that aim to prevent fraud and abuse. An employer must include a discussion of these matters in the employer’s employee handbook. Entities that fail to comply risk exclusion from the Medicaid program.

Despite the fact that the deadline for compliance has passed, many in the industry have complained that the law included far too many ambiguities, says Juvans Health Law Update.

Click here to learn more about employee education about the False Claims Act.

False Claims Case against Univesity of Phoenix stands

The U.S. Supreme Court has refused a petition by the University of Phoenix to throw out a massive suit charging the nation’s largest accredited private university with defrauding the government of millions of dollars in federal education loan funds.

According to an article in today’s Los Angeles Times, he suit was filed in 2003 under the False Claims Act by two former employees who alleged that the school, which offers degrees to midcareer workers, violated federal rules that bar giving incentives to employees to recruit students to enroll in the college.

Two years ago, after a probe by the U.S. Department of Education, the University of Phoenix paid the government $9.8 million in compensation. A report issued by the department said the company promoted an intense sales culture that rewarded recruiters who encouraged large numbers of students to enroll, even if they were not qualified.

Click the following link to read the full LA Times story on the case against the University of Phoenix.

Printer Friendly Page