Settlements and judgments under the False Claims Act exceeded $2.2 billion in the fiscal year that ended on September 30, more than $1.7 billion of which pertained to matters that involved the healthcare industry – including drug and medical device manufacturers, durable medical equipment, home health and managed care providers, hospitals, pharmacies, hospice organizations and physicians, according to the Department of Justice.

The False Claims Act imposes treble damages and penalties on those who knowingly and falsely claim money from the federal government or knowingly fail to pay money owed to the United States.

The amounts included in the $1.7 billion reflect recoveries arising just from federal losses. In many of these cases, the department was instrumental in recovering additional amounts for state Medicaid programs, the DOJ said.

The recoveries in fiscal year 2022 also reflected the department's focus on new enforcement priorities, including fraud in pandemic relief programs and alleged violations of cybersecurity requirements in government contracts and grants, the agency said.

WHAT'S THE IMPACT?

Healthcare fraud was a leading source of False Claims Act settlements and judgements in FY22. The DOJ uncovered fraud and abuse within the Medicaid program, such as in the case of Mallinckrodt, formerly known as Questcor Pharmaceuticals, which was accused by the government of knowingly underpaying rebates to the Medicaid program by improperly designating Acthar as a "new...

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