FALSE CLAIMS FREE CASE EVALUATION: 1-800-632-1404
In February 2014, AIM Healthcare Services paid $800,000 following a litigation filed under the provisions of the Tennessee Medicaid False Claims Act. The qui tam whistleblower lawsuit brought against the healthcare services provider by one of its employees had claimed that a Chattanooga-based TN mental health facility operated by AIM defrauded TennCare and Medicaid funds by submitting false claims.
The plaintiff’s TN false claim lawyer spearheading the whistleblower lawsuit accused the healthcare services provider of overcharging for psychosocial rehabilitation and resorting to “upcoding,” which is an offense under the Tennessee Medicaid False Claims Act. Upcoding refers to submitting false claims for providing “lengthy and expensive” services. The center claimed full-day reimbursements for services that were actually did not go beyond minutes or an hour.
In March 2013, Grace Healthcare settled a similar whistleblower lawsuit filed under the Tennessee Medicaid False Claims Act for $2.7 million. It was alleged that 10 Tennessee nursing homes run by the company defrauded Medicare funds by administering unnecessary therapies, including occupational and speech ones, to patients to make higher reimbursement claims. The whistleblower received $405,000 as reward.
Tennessee Medicaid False Claims Act
The state legislature passed the Tennessee Medicaid False Claims Act, an exclusive law covering fraudulent Medicaid claims, in 1993. It allows filing of qui tam whistleblower lawsuits filed in consultation with expert Tennessee false claim lawyers against anyone for submitting false claims to seek money from the government-funded healthcare program. Amended in 2013, the act provides for comprehensive penalty against those guilty of misappropriation of state funds or violation of paying obligations.
Defendants found to be guilty are imposed a fine that is usually three time more than the amount in question. Additionally, they have to pay a fine between $5,000 and $25,000.
Qui Tam Whistleblowers Reward, Protection
A qui tam relator filing a whistleblower lawsuit with the help of a qualified TN false claim lawyer stands to receive rewards varying between 15 and 25 percent of the total money recovered or settled for. The Tennessee Medicaid False Claims Act provides for a reward of between 25 percent and 33 percent of total recovery for the relator when the state agrees to become a party to proceedings. The payment goes up to become 30 percent of the settlement money, if the relator proceeds with his own TN false claim lawyer.
The Tennessee Medicaid False Claims Act also provides for protection to the whistleblower from any type of retaliation by the defendant.
$387 Million Paid as Whistleblowers Reward Last Year
In 2013, whistleblowers were rewarded with more than $387 million for their false claim lawsuits leading to recovery of federal funds exceeding $3 billion. There were 846 false claim lawsuits filed nationwide last year, and a whopping 89 percent of these litigations were brought by quit tam whistleblowers and their false claim lawyers.
A large number of TN whistleblower lawsuits filed in 2013 were against hospitals and pharmaceutical companies. Other defendants included researchers for defrauding cancer research fund, schools for embezzling financial aid, technical service providers for violating state procurement rules, construction firms for double billing, and businessmen for upcoding and false billing.
FOR FALSE CLAIMS ACT HELP, PLEASE CONTACT US.
We help whistleblowers on a contingency basis, meaning there is no fee charged for our work unless there is a recovery. We also front any and all expenses. No matter where you are located — we will represent you. We will come to you, you will not have to come to us. Attorneys in our firm and attorneys that we work with on Whistleblower, Qui Tam, False Claims Act cases have represented a host of persons making claims, for violations of federal tax law, Medicare law and more. For more information, please contact our team of whitsleblower and qui tam attorneys today, or visit our False Claims Act Litigation Source.
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Our offices will review potential false claims act cases in all fifty states, including Tennessee, Arkansas, Mississippi, Kentucky and Alabama.