Health Care Investors Beware: U.S. Attorney Sues Private Equity Firm For Portfolio Company’s Alleged Billing Fraud
The U.S. Attorney for the Southern District of Florida recently intervened in a whistleblower lawsuit brought under the federal False Claims Act, alleging fraudulent billing by a pharmacy reimbursed by the federal government. (U.S. ex rel. Medrano v. Diabetic Care Rx, LLC, No. 15-cv-62617, S.D. Fla.) What makes this case significant is that the U.S. Attorney has also named a private equity (PE) firm as a defendant. This attempted extension of False Claims Act liability to a PE firm should serve as a cautionary tale about the risks to private equity invested in the health care space, for a portfolio company’s management decisions and business operations implicating the fraud and abuse statutes applicable to the Medicare, Medicaid and TRICARE programs. Read more.
Read more detail on Recent Administrative Law posts –
- DOJ Targets Private Equity Firm for Portfolio Company’s Alleged Improper Kickbacks
- Psychiatrist Who Saw Patients by "Skype" Pleads Guilty to Health Care Fraud for Treatment and Billing for Workers' Compensation Patients
- Los Angeles Clinic Owner, Physician, Office Manager, Insurance Biller and Former Insurance Investigator Indicted for Health Care Fraud. Charged With Billing for Services Not Provided and Giving Patients Free Cosmetic Procedures for Insurance Information.
- Florida Physician and Ex-Wife Indicted in Health Care Fraud Conspiracy For Alleged False Claims to Medicare and Blue Cross Blue Shield for Allegedly Using False Diagnoses of Rosacea, Acne, and Actinic Keratosis to Perform Chemical Peels, Dermabrasions, and Acne Surgery
- Two Northern California Doctors Face Sentencing in April 2018 After Being Convicted by Jury of Health Care Fraud After 8 Week Trial for Billing for Unperformed Services, Unseen Patients and Other False Billing Statements
- Kentucky Cardiologist Sentenced to 60 Months for Health Care Fraud and False Statements Relating to Implanting Medically Unnecessary Stents and Falsifying Degree of Stenosis in Medical Records
- After 6 Week Trial, New York Doctor And Physical Therapist Found Guilty Of Health Care Fraud, Conspiracy to Make False Statements Relating to Health Care Programs Medicare And Medicaid and Other Counts With Allegations of Sham Owner, Falsified Medical Records, Kickbacks.
- California Business Partners in Home Health and Hospice Businesses Sentenced To 33 Months In Federal Health Care Fraud Case. One Partner Was Previously Excluded From Medicare By OIG.
- Sacramento Area Neurosurgeon Charged With Workers' Compensation Fraud and Insurance Fraud For Alleged Upcoding and Ghost Billing For Services Not Provided
- Colorado Doctor Convicted Of Health Care Fraud and Obstruction of Justice. Admitted Shredding Patient Charts During the Investigation.
This entry was posted in Administrative law
and tagged Alleged
. Bookmark the permalink