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This site provides news and information about the False Claims Act qui tam whistleblower law, the Tax Whistleblower law and the Securities and Commodities Whistleblower law. On this site you can learn the basics of each law and the process of bringing a case as well as read about the latest developments.

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Sunday, September 23, 2007

Novation Faces Suit Alleging Kickbacks

Cynthia Fitzgerald of Plano, TX has filed a lawsuit against her former employer, Novation, claiming that the corporation offered kickbacks to hospitals to secure major contracts.  This allegation reaches far, ultimately resulting in Medicare fraud.  Suppliers, such as Novation, often overcharge hospitals, regaining their kickback money.  Hospitals compensate for this by filing, often fraudulently, for reimbursement from Medicare and Medicaid for the supplies that they are purchasing.

Novation, which is the nation’s largest group purchasing organization for hospitals, serves 2,200 community owned hospitals and 100 teaching hospitals.

Ms. Fitzgerald worked for Novation from July 1998 to Februry 1999 as a senior product manager for medical products.  She alleges that she was fired after alerting her bosses to illegal payments to the company.

Novation claims that the allegations are without merit.

Click here to read the full Dallas News article by Jason Roberson, Novation ex-worker files suit alleging kickbacks.

Posted by Quitam Help Admin on 09/23 at 05:09 PM
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