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Wednesday, April 22, 2026

False Claims Act 2023: What Every Health Care Entity Working With ... - Mondaq News Alerts

In our July 18, 2023, webinar titled "False Claims Act 2023: What Every Health Care Entity Working with the Government Needs to Know," Manatt posed the following hypothetical and asked three questions about it in our live poll. Below we share the poll results—and give our views on the hypothetical. Thanks once again to all who participated in the webinar and gave us thoughtful results in the poll. The free webinar is available on demand here, for those who missed the program or would like to view it again.

The Hypothetical

You are the general counsel of a pharmaceutical company.

The Company would like to enter into an agreement with a safety net hospital network which would provide that each time a Medicaid patient was prescribed one of the Company's most expensive drugs while in the hospital, the Company would cover the co-pay for the drug after the patient is discharged.

In exchange, the hospital would provide significant anonymized medical information about each patient.

There are no alternative drugs to treat the condition, and the patient must continue the regimen at discharge.

You know that there is Office of the Inspector General (OIG) guidance that finds that covering a patient's co-pay could be viewed as a violation of the kickback statute, but you believe that you have a good legal argument that because the drug has already been prescribed and there are no alternatives to this drug, the Pharmaceutical Company is not getting any new patients in exchange for the...



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