This newsletter provides a compilation of the latest news headlines by our Healthcare attorneys. Certain online publications may require a site registration or subscription in order to access the article.

No Dismissal of False Claims Case Against Medical Device Manufacturer, Bloomberg BNA, March 20, 2012

On March 14, 2012, a federal trial court refused to dismiss a lawsuit under the False Claims Act against Guidant Corp. The relator in that case alleged that Guidant Corp. had made false representations to Medicare and the Veterans Administration that Prizm 1861 implantable cardioverter defibrillators made between April 16, 2002, and Oct. 5, 2007, were free from known defects. In refusing to dismiss the relator's claim, the trial court determined that the government's claim against Guidant Corp. did not supersede the relator's claim and that the relator was an original source of the information on which the allegations were based.

Lawsuit Alleging Fresenius Performed Unnecessary Dialysis Tests Proceeds, Bloomberg BNA, March 23, 2012

On March 6, 2012, a Massachusetts federal trial court refused to dismiss a lawsuit under the False Claims Act against Fresenius Medical Care Holdings Inc. The relator alleged that Fresenius had violated the False Claims Act by billing for unnecessary tests. The court refused to dismiss the relator's claim based on the facts that the relator was an original source of the allegations in the complaint against Fresenius.

FTC Urged To Probe Merck, Sanofi Vaccine Bundling, Law360, March 19, 2012

A number of advocacy groups have urged that the Federal Trade Commission investigate vaccine bundling. Specifically, the advocacy groups allege that Merek & Co. Inc. and Sanofi Pasteur Inc. have coerced pediatricians to purchase all of their vaccines at a bundled discount regardless of whether other manufacturers offer more effective alternatives.

Express Scripts, Medco Delay Deal Pending FTC Review, Law360, March 13, 2012

Express Scripts, Inc. and Medco Health Solutions agree with the Federal Trade Commission not to complete their proposed $29 billion merger to provide the agency with more time to review the deal. The pharmacy benefit managers agreed to the postponement even though the waiting period under the Hart-Scott-Rodino Act expired on March 12, 2012. The proposed merger would combine two of the top three pharmacy benefit managers in the country.

Hospice Reaches $25M Settlement With DOJ Over Alleged Improper Billing of Medicare, Bloomberg BNA, March 7, 2012

On March 2, 2012, Odyssey HealthCare, Inc. reached a $25 million settlement with the Department of Justice to resolve False Claims Act lawsuits that had been filed against it. The lawsuits had alleged that Odyssey submitted false claims to Medicare for continuous care hospice services that either were unnecessary or were never performed.

NYC Hospital Pays $13M For Medicare Turbocharging, Law360, March 1, 2012

Beth Israel Medical Center, a New York hospital, has reached a $13 million dollar settlement with the Department of Justice to settle False Claims Act allegations that had been filed against it. The Government had alleged that Beth Israel Medical Center had overbilled Medicare by fraudulently increasing charges for inpatient care.

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