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Justice Department Recovers $3 Billion in 2019 from False Claims Act Cases – $2.6 Billion Related to Health Care Industry

Health Law Alert

This week the Department of Justice reported it recovered $3 billion from False Claims Act cases in 2019. Of that recovery amount, $2.1 billion resulted from whistleblower, or qui tam, actions. In addition, 633 new qui tam suits were filed in fiscal year 2019.

As has been the case in prior years, the health care industry remained in the crosshairs of the Department of Justice in 2019, accounting for $2.6 billion of the $3 billion recovered in False Claims Act cases. In addition, millions of dollars were recovered by State Medicaid programs.

A significant amount of the health care recoveries came from cases involving opioid and other drug manufacturers. Other types of health care providers were not immune from False Claims Act cases, with substantial recoveries also reported from medical device manufacturers, managed care providers, hospitals, pharmacies, hospice organizations, laboratories, and physicians. Although corporate defendants were primarily the focus of these False Claims Act cases, the Department of Justice continued its commitment to hold individuals accountable for their participation in health care fraud. The Department of Justice announcement included settlements involving recoveries from individual owners and officers of health care providers.

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