The health care industry has the dubious distinction of being responsible for more than three-fourths of all False Claims Act settlements and judgments in the fiscal year that ended last September 30.

Of the more than $2.2 billion reported by the U.S. Department of Justice, more than $1.7 billion involved drug and medical device manufacturers; durable medical equipment; home health and managed-care providers; hospitals, pharmacies; hospice organizations and physicians. This total represents only recoveries from federal losses, although in many cases, the department was instrumental in recovering additional amounts for state Medicaid programs.

The department reported settling high-profile cases in several health care categories:

Medicaid. The Medicaid program provide health care coverage to millions of Americans, including some of the nation’s most vulnerable populations, and is funded jointly by states and the federal government.

• Mallinckrodt ARD LLC (previously Questcor Pharmaceuticals Inc.) paid $260 million to resolve separate allegations related to its drug H.P. Acthar Gel, which is approved to treat, among other things, acute exacerbations of multiple sclerosis and infantile spasms. The government alleged that the company knowingly underpaid rebates to the Medicaid program by improperly designating Acthar as a “new drug” as of 2013, as opposed to a preexisting drug for which Mallinckrodt had significantly raised the price in previous years.
• Gold Coast Health Plan,...

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