Government Reports Banner Year For Healthcare Fraud Recovery

Government Reports Banner Year For Healthcare Fraud Recovery

The Department of Justice recently reported recoveries of more than $2.6 Billion in health care fraud for the calendar year 2013.  These numbers have been steadily climbing over the last four years, thanks in part to the emphasis the Obama administration is putting on the effort to stop health care fraud.

The primary weapon of choice for the Department of justice is the False Claims Act, which has been used to recover $12.1 billion dollars since 2009.  Most recoveries relate to fraud involving Medicare and Medicaid.   While much of the money was secured by suing pharmaceutical companies for false advertising, etc., the DOJ reports it obtained 16 criminal convictions and more than 1.3 billion in criminal fines, forfeitures and disgorgement under the Federal Food, Drug and Cosmetic Act which promotes public safety by assuring that drugs intended for human consumption are safe.

Notable recoveries include a $237 million dollar judgment against Tuomey Healthcare System Inc., after a four week trial, for violating the Stark Law and the False Claims Act; and a judgment against dermatologist Steven J. Wasserman, M.D. for his role in an illegal kickback arrangement with Tampa Pathology Laboratory.