The False Claims Act: A Case Study

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Stark is enforced by the Centers for Medicare and Medicaid Services (“CMS”). However, the vast majority of Stark claims are brought as a qui tam realtor suits under the False Claims Act (“FCA”) by the Department of Justice (“DOJ”). The DOJ then decides to intervene or to let the relator, bringing the suit, proceed on his own. The harsh reality of a Stark violation coupled with a colorable claim under the FCA can be clearly seen in the case of Tuomey Healthcare System, Inc. In July of 2015, it incurred civil monetary penalties levied in excess of $237 million. In his concurring opinion Circuit Judge James Wynn stated the “troubling picture the case paints: An impenetrably complex set of laws and regulations that will result in a likely death sentence for a community hospital in an already medically underserved area.” …show more content…
In 2014 there were an estimated fifty-four million people enrolled in Medicare programs. Despite the increase in Medicare enrollees since 1990, the number of inpatient hospital beds has decreased by forty-five percent. As part of its initial mandate the Centers for Medicare and Medicaid Services (“CMS”) stated that the initial law did not “authorize any Federal officer or employee to exercise any supervision or control over the practice of medicine or the manner in which medical services are provided or over the selection, tenure, or compensation…of any institution, agency, or person providing health