FCA recoveries

The Department of Justice (DOJ) recently announced that it had recovered more than $2.8 billion from False Claims Act (FCA) cases in the 2018 fiscal year. Although this number continues a multi-year downtrend in overall FCA recoveries, healthcare fraud remains a major DOJ focus, with $2.5 billion of the recoveries (ie, 87.25% – the highest proportion in at least the past decade) coming from healthcare cases:

This $2.5 billion was extracted from various segments of the healthcare industry, including through major settlements with:

  • pharmaceutical and medical device manufacturers;
  • hospitals;
  • a physician association; and
  • a wholesaler.

That sum is the fifth largest annual healthcare recovery ever and the second largest in the past five years. Of the $2.5 billion, $568 million was recovered in non-qui tam actions – the second highest annual sum of healthcare recoveries from original actions.

Individual recoveries

In addition to emphasising healthcare recoveries, the DOJ's press release highlighted actions against individuals, including a $114 million kickback judgment against three individual defendants and a separate $5.5 million kickback judgment against two individuals and their professional corporations.

The DOJ's announcement can be found here.

This article was first published by the International Law Office, a premium online legal update service for major companies and law firms worldwide. Register for a free subscription.