The American Hospital Association sent a follow-up letter to the Department of Justice asking for greater oversight of False Claims Act investigations to ensure "effective, fair and just administration of the statute and the federal health care programs," according to the letter.
Additionally, the AHA is requesting greater oversight of the DOJ's kyphoplasty initiative and reaffirmation of the principles outlined in a 1998 Holder Memo, which offers guidance on the use of the False Claims Act in civil healthcare matters, according to the letter. The kyphoplasty initiative stems from a False Claims Act lawsuit brought against Kyphon, a manufacturer of a device used in kyphoplasty procedures.
Former company employees accused the company of incenting hospitals to administer kyphoplasties on an inpatient, rather than outpatient, basis to receive more reimbursements from federal healthcare programs. Following the settlement, federal offices began to investigate other hospitals who administered kyphoplasties.
AHA is requesting a meeting with DOJ in 60 days for discussions over the department's response to the letter.
Read the AHA's letter to the DOJ about False Claims Act investigations (pdf).
Read other coverage about false claims lawsuits:
- Department of Justice Recovers $3B in False Claims Act Lawsuits in FY 2010
- AARP to Join False Claims Lawsuit Against Pharmaceutical Companies
- Novartis Pays $422M to Settle Allegations of Illegal Drug Promotion, False Claims, Paying Kickbacks
Additionally, the AHA is requesting greater oversight of the DOJ's kyphoplasty initiative and reaffirmation of the principles outlined in a 1998 Holder Memo, which offers guidance on the use of the False Claims Act in civil healthcare matters, according to the letter. The kyphoplasty initiative stems from a False Claims Act lawsuit brought against Kyphon, a manufacturer of a device used in kyphoplasty procedures.
Former company employees accused the company of incenting hospitals to administer kyphoplasties on an inpatient, rather than outpatient, basis to receive more reimbursements from federal healthcare programs. Following the settlement, federal offices began to investigate other hospitals who administered kyphoplasties.
AHA is requesting a meeting with DOJ in 60 days for discussions over the department's response to the letter.
Read the AHA's letter to the DOJ about False Claims Act investigations (pdf).
Read other coverage about false claims lawsuits:
- Department of Justice Recovers $3B in False Claims Act Lawsuits in FY 2010
- AARP to Join False Claims Lawsuit Against Pharmaceutical Companies
- Novartis Pays $422M to Settle Allegations of Illegal Drug Promotion, False Claims, Paying Kickbacks