DOJ’s Dismissal of Medicare Fraud Suit Backed in Appeal (1)

The Justice Department reasonably sought dismissal of a whistleblower suit accusing Medicare compliance company Executive Health Resources Inc. of violating the False Claims Act by falsely designating patient admissions, the Third Circuit affirmed Thursday.

In doing so, the U.S. Court of Appeals for the Third Circuit sided with the Seventh Circuit’s approach to government dismissal power under the FCA, further solidifying a three-way circuit split on the matter.

The FCA provides that the government may dismiss a whistleblower’s action if it gives notice and the whistleblower has an opportunity for a hearing.

A Pennsylvania federal court properly found that the ...