In a case of first impression, a federal judge in Camden has ruled that a hospice care company is subject to suit under the False Claims Act for changing patients’ diagnoses to make them eligible for reimbursement under Medicare.

Four former employees of Care Alternatives Inc. of Cranford were given a green light to proceed with their suit claiming their former employer told workers to falsify records in order to meet Medicare criteria. A motion by the company to dismiss the amended complaint was granted in part and denied in part.