Healthcare fraud recoveries set record in 2012
The Department of Justice announced Tuesday that False Claims Act recoveries in 2012 set records, including for healthcare recoveries, which topped $3 billion.
The Justice Department recovered $4.9 billion in settlements and judgments in civil cases for the fiscal year ending Sept. 30, 2012, surpassing last year’s record by $1.7 billion. A record number (647) of those cases were filed under qui tam, or whistle-blower, provisions. Of the $4.9 billion recovered under the False Claims Act in 2012, $3.3 billion was recovered in whistle-blower suits.
“Thanks to the dedicated work of attorneys, investigators, analysts and support staff at every level of the Justice Department – along with our state and local partners across the country – we have secured the largest annual recovery in the Department's history,” said Attorney General Eric Holder, in a statement. “By aggressively investigating allegations of waste and pursuing those who would take advantage of the most vulnerable members of society, I'm confident that we will continue to build on this historic progress in the months and years ahead.”
The department’s recoveries for healthcare fraud topped $3 billion for the first time in a single fiscal year. A press release from the Justice Department noted that this year marks the second year in a row that it has set a new record for recoveries under the False Claims Act for healthcare fraud and that most recoveries are related to Medicare and Medicaid fraud.
This year’s top healthcare recoveries include $1.5 billion from GlaxoSmithKline and $441 million from Merck. A $561 million False Claims Act settlement with Abbott Laboratories, part of a $1.5 billion global resolution, will be in FY 2013 accounting.
[See also: GlaxoSmithKline pays over $3B to resolve fraud charges; and Abbott Labs to pay $1.6B for off-label drug promotion.]
