False Claim Act Case Study

SUMMARY The article is about settlement of $238 million for the kickback allegations which commences from a whistle-blower lawsuit. It stated that four Georgia Hospitals, namely, the Atlanta Medical Center, North Fulton Hospital on Roswell, Spalding Regional Hospital on Griffin and Hilton Head Hospital on Hilton Head Island knowingly infringed the False Claims Act or FCA. Cleverley, W.O., Song, P.H., and Cleverley, J.O., (2011) defined the False Claim Act (FCA) which is the federal government’s primary civil remedy for improper or fraudulent claims. This article fit the description that the four Georgia hospitals committed fraud by illegally acquiring kickbacks from referrals by “contracting with a clinic operated by Hispanic Medical Management for prenatal care provided to uninsured patients.” According to Cleverley, W.O., et al, “Qui tam actions are also known as “whistleblower” suits. In a Qui tam action a relator with personal knowledge of a fraud brings a suit against a defendant on behalf of the government.” The discovery was made due to the suspicious amount “the company reported $97 million net loss for the fourth quarter of 2015 compared with a $61 million net profit in the same quarter of 2014.” In addition, “the company reported a $140 million net loss for the full year, compared with a $12 million profit in 2014.”
CONCEPTS
Financial management is a complex matter. Furthermore, adhering to the rules and regulations of the state and federal government is the utmost importance in continually making the corporation open for business. Disregarding these rules will make a manager out of job or a corporation out of