The whistleblowers brought their allegations under the quitam provisions of the False Claims Act. The law allows private citizens with knowledge of false claims to file lawsuits on behalf of the U.S. government and to share any recovery. The whistleblowers will receive a portion of the federal share of the recovery under the civil settlement.
In a statement, Assistant Attorney General Jody Hunt of Department of Justice, Civil Division, said, “Kickbacks made in connection with the provision of medical services undermine the integrity of our health care system. We will take action against medical service providers who through unlawful conduct put their own financial interests ahead of the best interests of patients.”
On the other hand, U.S. Attorney Robert Hur stated, “Kickbacks give doctors an incentive to pursue unnecessary treatments that are costly and sometimes even dangerous to patients. We will not tolerate medical care providers who put their patients at risk and waste taxpayers’ dollars in order to line their own pockets.”