Jones-McNamara v. Holzer Health Sys. — Nov. 2015 (Summary)

FALSE CLAIMS ACT

Jones-McNamara v. Holzer Health Sys.
No. 15-3070 (6th Cir. Nov. 2, 2015)

The United States Court of Appeals, Sixth Circuit affirmed the district court’s order granting summary judgment to a health system in a False Claims Act retaliation suit brought against it by a former employee. The former employee, who held the position of Vice President for Corporate Compliance, alleged that she was terminated because of her complaints to the CEO and others that an ambulance company was providing, in violation of the Anti-Kickback Statute, embroidered jackets to individuals working at the health system and hot dogs and hamburgers for the health system’s health and wellness fairs. In granting summary judgment to the health system, the court concluded that the former employee did not engage in protected activity under the False Claims Act anti-retaliation provisions because she did not have an objectively reasonable belief that the conduct violated the Anti-Kickback Statute. According to the court, “[i]t cannot plausibly be suggested that one jacket valued at $23.50 and occasional services of hotdogs and hamburgers could induce a reasonable person to prefer one provider over another.” The court also determined that the former employee failed to provide evidence of a connection between the gifts and referrals to that ambulance company.