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North Carolina Hospitals Defeat Medicare Billing Fraud Lawsuit

June 15, 2020, 5:06 PM

A whistleblower failed to show that North Carolina Baptist Hospital and the Charlotte-Mecklenburg Hospital Authority had the kind of knowledge needed to hold them liable for improperly billing Medicare for employees’ health costs, the Fourth Circuit affirmed Monday.

Joseph Vincoli didn’t demonstrate that the hospitals knowingly submitted false claims under the False Claims Act by failing to comply with a regulation known as the “Related-Party Rule,” the U.S. Court of Appeals for the Fourth Circuit said in a nonprecedential decision.

The rule requires hospitals to report costs for providing care to their own employees, and to submit for reimbursement only...

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