The Supreme Court will hear arguments Tuesday from federal lawyers seeking to dismiss more False Claims allegations in which the government chooses not to intervene, a move that would likely reduce the number of meritless cases providers face.

In United States, ex rel. Polansky v. Executive Health Resources, the Court must decide whether government attorneys can seek the dismissal of cases in which it doesn’t see enough merit to get involved, and what standards should be adopted to allow those dismissals.

The decision is a major one for nursing homes, whose owners are often targeted in high-dollar suits in which “relators,” or private individuals, attempt to bring a case on the government’s behalf alleging misuse of federal dollars. Relators stand to collect triple the amount of financial damage alleged, and the number of False Claims allegations has exploded since Congress established their right to sue in 1986.

Though most claims are deemed meritless by the government, which can either decide to help a relator with a case or pass on it, even those rejected for federal litigation can drag on for years or result in costly settlements. Last year, for instance, SavaSeniorCare settled what it called “unfounded” and longstanding allegations of billing Medicare for unnecessary therapy services. The company agreed to an $11.2 million agreement after spending 10 years and “several million dollars” on defense costs.

“Healthcare providers have been one of the primary targets of...

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