A Massachusetts federal court decision issued last week in a False Claims Act case highlighted a growing circuit divide over the correct standard of causation for determining a violation of the Anti-Kickback Statute.
U.S. District Judge Patti B. Saris issued an opinion in Omni Healthcare v. MD Spine Solutions, that waded into an issue that has divided courts in False Claims Act liability cases. Omni filed a qui tam action in the U.S. District Court for the District of Massachusetts on behalf of the federal government against MD Spine Solutions, doing business as MD Labs, for allegedly violating the False Claims Act (FCA), the Anti-Kickback Statute (AKS), and Massachusetts state law by submitting false claims for medically unnecessary for urinary tract infection tests and commission payments to independent contractors. Omni, a medical practice in Florida owned by Dr. Craig Deligdish, instructed staff to order polymerase chain reaction (PCR) urinary tract infection testing from MD Labs even when the medical provider selected an older version of the test, called a bacterial urine culture (BUC).
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