A recent 6th Circuit decision could help suppress certain False Claims Act (FCA) cases in the health care industry.
In 2006, ex-MedQuest Associates Inc. employee Karen Hobbs filed a whistleblower suit under the FCA, which imposes liability on entities that defraud the government. Hobbs claimed MedQuest, a diagnostic company, used unapproved physicians to monitor patient tests, and therefore the claims the company submitted to Medicare were fraudulent. The Department of Justice (DOJ) later intervened in the case.
