Physician Referral Fraud Suit Requires Loper Bright Briefing

A whistleblower’s False Claims Act suit against Thomas Health System Inc. and others can’t be resolved without parties’ briefs on the US Supreme Court’s recent ruling on how courts should approach regulatory interpretations, a federal district court said.

Liesa Kyer alleges that Thomas Health violated the FCA by seeking federal health-care program payments with claims tainted by Stark Law violations. The Stark Law prohibits physicians and entities in financial relationships from improperly benefiting from referrals. Kyer says Thomas Health employed physicians under compensation arrangements that took referrals for surgeries and procedures into account.

The Stark Law’s regulations are “complex, nuanced, ...