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Hospital Fraud (Demo)

$520,000 False Claims Act settlement is second this week.

The state of Georgia is cracking down on Medicare and Medicaid fraud. If there’s any doubt on that score, just look at the two False Claims Act settlements that came out recently – a $20 million settlement with the Medical Center of Central Georgia in Macon, and a $520,000 settlement with Irwin County Hospital in Ocilla.

The McCabe Law Firm, which closely monitors national health care fraud resolutions, notes that these cases can be complex, but that the law provides real rewards for whistleblowers who step up with insider information that leads to recoveries and an end to fraud schemes.

Understanding the Irwin County and Macon Settlements

In the Irwin County Hospital case, which was litigated with the help of co‐counsel Brandon Hornsby at the Hornsby Law Group in Atlanta, the whistleblowers walked away with a $130,000 award for helping stop the fraud, and as compensation for the retaliation that followed.

Federal and State False Claims Acts allow private citizens with insider knowledge of fraud, waste, and abuse to bring an action on behalf of the governments in order to stop the fraud. If the case is won, the government can recover over three times the amount defrauded, and successful whistleblowers can receive between 15 and 30 percent of the governments’ recovery.

“It’s all about incentivizing integrity,” states our legal team. “Chiselers are always incentivized to cheat. The False Claims Act sets things right by providing a countervailing incentive to do the right thing.”

The Massive Scale of Modern Whistleblower Recoveries

There’s no question the False Claims Act works. According to recent Department of Justice statistical releases, the federal government consistently recovers billions of dollars annually thanks to whistleblower‐initiated cases.

Healthcare litigation continues to represent the vast majority of these recoveries, a situation that has steadily intensified with expanded federal healthcare funding rules.

The Macon hospital settlement involved allegations of upcoding (billing for a more expensive service than what was actually provided) for inpatient services when the billing should have been for less costly outpatient or observation services. In the Irwin County Hospital case, the allegations involved kickbacks for patient referrals and for billing for improperly performed imaging services.

Our firm notes that it looks like a real fraud‐fighting partnership has solidified between state Medicaid Fraud Control Units, the U.S. Department of Justice, and whistleblowers and their attorneys.

“We’re seeing a real public/private partnership that is bringing a real dividend for the American people. That’s exactly how the law is supposed to work,” adds a Whistleblower Attorney at The McCabe Law Firm.

About The McCabe Law Firm

The McCabe Law Firm has earned a national reputation for successful representation of whistleblowers in federal and state courts across the United States, standing as a dedicated advocate exclusively representing relators. Our team’s deep command of qui tam litigation helps protect the United States treasury and secures substantial whistleblower rewards for honest citizens who come forward.

FINAL SETTLEMENT AGREEMENT   |   COMPLAINT