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Mid-December Wave of Hospital FCA Settlements

On Dec. 18, 2015, the Department of Justice (DOJ) announced two separate settlements reached with hospitals that violated the False Claims Act (FCA). The first instance involved 21st Century Oncology, an integrated cancer care company headquartered in Fort Meyers, FL, which agreed to pay $19.75 million to resolve the allegations that four of its urologists routinely and continually ordered tests that were not medically necessary, but merely increased profits. The DOJ asserted that the hospital not only knew of the FCA violations, but encouraged them by offering doctors bonuses that were contingent upon the number of unnecessary tests referred to the 21st Century laboratories. The lawsuit was filed by a whistleblower ' a 21st Century medical assistant ' under the qui tam provisions of the FCA, whereby a private party is permitted to bring a suit on behalf of the government and share in any recovery. In this case, the medical assistant is expected to receive $3.2 million for her role.

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