Boston Scientific Corp. Guidant LLC will play $9.25 million to settle false claims allegations, brought forth by a whistleblower, that the company defrauded the U.S. Government and private hospitals for heart pacemakers and defibrillators. The whistleblower will receive more than $2.3 million from the settlement.
Here is a list of the “15 Biggest Hospital False Claims and Anti-Kickback Stories of 2011” published by Becker’s Hospital Review. Read the list to gain valuable insight into the common types of fraud and waste plaguing the U.S. health system.
A Miami Federal Judge has refused to dismiss false claims lawsuits brought by former Kaplan employees, who allege that Kaplan University and Kaplan Higher Education Corp. violated the Higher Education Act to receive federal funding and profits. While the Judge rejected some of the whistleblowers’ accusations against Kaplan (i.e. manipulating student academic records and job-placement statistics), she allowed the whistleblower to pursue other claims, such as the retaliation claims.
Read more at: http://www.courthousenews.com/2011/09/22/39981.htm
Bank of America Corp must reinstate a Countrywide whistleblower, who was fired promptly after the merging of the two companies in 2008, and pay $930,000 in damages to the employee. The former employee, during his employment, conducted internal investigations, which led to the discovery of widespread fraud involving Countrywide employees. Upon his report to Countrywide’s Employee Relations Department, he was subsequently fired.
Read more at: http://www.huffingtonpost.com/2011/09/14/bank-of-america-whistleblower_n_962702.html
Johnson & Johnson’s Scios unit will pay $85 million in penalties for misbranding the heart drug Natrecor. Under the False Claims Act, the U.S. alleged that Johnson & Johnson illegally marketed Natrecor for off-label “serial outpatient infusions” not yet approved by the FDA. According to the U.S., this practice has led to “substantial amounts” of false claims being submitted to the Medicare program.
Read more at: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/09/14/bloomberg1376-LO1H7S1A74E901-6UOBJB6Q63F6MNPNPP8VHND6UL.DTL&type=printable