Medicaid Payment Firm Escapes Whistleblower’s False Claims Suit

Jan. 6, 2026, 1:49 AM UTC

A whistleblower failed to convince a federal appeals court that a lower court wrongly granted summary judgment in his False Claims Act lawsuit against Health Management Systems Inc.

Christopher Frey couldn’t show any genuine fact disputes to justify a reversal of summary judgment, the US Court of Appeals for the Fifth Circuit said.

There’s no “evidence that HMS failed to bill even a single claim under its contracts with state-Medicaid agencies,” the Fifth Circuit said in a per curiam opinion, affirming the district court’s ruling.

Health Management contracts with several state Medicaid agencies to identifying improper Medicaid payments and ...

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