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Senate approves Fraud Act

Patient Financial Services Weekly Advisor, May 1, 2009

The Senate on Tuesday approved the Fraud Enforcement and Recovery Act of 2009, which would give additional resources to law enforcement for fighting fraud and abuse, and strengthens fraud laws and statutes.

Although the bill's primary function it to prevent the growing number of mortgage fraud cases, it also broadens the scope of claims that fall under the False Claims Act, which can affect any organization that submits claims to the government for payment, including healthcare providers.

Specifically, the bill would extend the reach of the False Claims Act to include any false or fraudulent claim for government money or property, regardless of whether:

• The claim is presented to a government official or employee
• The U.S. government has physical custody of the money
• The defendant specifically intended to defraud the U.S. government

"If the bill becomes law, it's easier for the government and private whistleblowers to succeed in false claims act cases," says Claire Turcotte, a healthcare attorney with Bricker & Ecker LLP in West Chester, OH.

The House of Representatives will take up the bill.

Read the full story by Ben Amirault of Healthleaders Media.

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