On February 7, 2023, the Department of Justice (DOJ) announced that FY 2022 yielded just $2.2 billion in spoils from False Claims Act (FCA) judgments and settlements—the smallest haul since 2008 and a precipitous drop from 2021’s $5.7 billion bounty. But it would be a mistake to stop at that headline and conclude the FCA is on the wane. Indeed, potentially the most meaningful statistics in yesterday’s announcement for those who do business with the Government were the near-record number of FCA resolutions in 2022 – 351 cases (second all time) – and the substantial number of qui tams filed – 652. While there may not have been as many blockbuster resolutions in 2022 as in 2021, the sheer number of resolutions gives teeth to the DOJ’s consistent assertion that the FCA is the Government’s primary civil tool to fight fraud against Government programs, a refrain that was substantively echoed hours later in President Biden’s State of the Union Address.
Beyond the numbers, the Civil Division’s long-awaited announcement provided additional insight into current and future enforcement priorities. As has historically been the case, the healthcare industry continues to dominate the FCA landscape. DOJ highlighted recoveries in fraud and abuse cases in the Medicaid program, billing for medically unnecessary or substandard services, and kickbacks. It also went out of its way to emphasize its commitment to fighting fraud in the Medicare Advantage program and drug pricing, even though it...
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