December 09, 2014 Articles

The Growing Threat of Qui Tam Litigation Against Healthcare Providers

The ACA ushered in four changes that are favorable to relators and could add risk exposure to providers.

Amandeep S. Sidhu

Over the past few years, there have been steady changes in the regulatory, enforcement, and litigation environment that should worry every company providing goods or services to the United States. Hospitals and other healthcare providers, in particular, should be on guard. While providers have long-feared the False Claims Act (FCA), Stark law, and anti-kickback statute—and have often crafted compliance, education, and oversight in response—the 2009 Fraud Enforcement and Recovery Act (FERA) amendments to the FCA and the corresponding uptick in FCA actions and recoveries have resulted in a litigation climate today that is more troubling than ever.

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