The House Judiciary Committee on July 16 voted to send legislation (H.R. 4854) amending the False Claims Act to the full House for a vote, but not before making certain amendments. In a letter sent this morning to the Committee’s chairman and ranking member, the American Hospital Association expressed strong opposition to the bill, asserting that it would force hospitals to divert funds needed for patient care to defend against frivolous lawsuits.
AHA is particularly concerned over a provision that would expand the FCA to include a new penalty for retaining an overpayment that the defendant did not ask for and, for legitimate reasons, had yet to return to the government payer. In the letter, AHA said this provision fails to account for existing means in federal law, regulation and practice by which health care providers reconcile overpayments and underpayments on a regular basis.
“This legislation goes far beyond the original scope of the law and is not in the best interests of hospitals and patients,” AHA Executive Vice President Rick Pollack said in the letter. The approved version sets a statute of limitations of eight years for filing qui tam suits; would require government relators to have actual knowledge of an overpayment in order to file a qui tam suit; precludes government employees from filing qui tam suits in cases the Department of Justice declines to pursue; and exempts city, county and local governments from prosecution also in cases the DOJ declines to pursue. Many public hospitals are considered local units of government for tax purposes.
The bill is similar to S. 2041, which passed the Senate Judiciary Committee in April.
[ via AHA News Now ]
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