U.S. ex rel. Health Dimensions Rehab., Inc. v. RehabCare Group, Inc. (Summary)

FALSE CLAIMS ACT

U.S. ex rel. Health Dimensions Rehab., Inc. v. RehabCare Group, Inc., No. 4:12CV00848 AGF (E.D. Mo. May 20, 2013)

The United States District Court for the Eastern Division of Missouri denied a rehabilitation services provider’s (“RehabCare”) motion for summary judgment in a False Claims Act lawsuit brought by one of its competitors (“relator”).  The government intervened in part in the suit.

The government argued that RehabCare paid significant amounts of money in violation of the Anti-Kickback Statute to a contract provider of rehabilitation services in exchange for a subcontract that called for RehabCare to provide therapy services in nursing homes.  RehabCare then submitted claims to Medicare and Medicaid, falsely certifying that the claims were in compliance with the law, and, thus, in violation of the False Claims Act.  RehabCare argued that the suit fell under the public disclosure bar of the False Claims Act because the allegations were based on, among other things, a webcasted conference call and an SEC filing.  The court disagreed and concluded that without the relator’s analysis and investigation, the alleged fraud would not have been understood by the government.