False Claims Act Attorney News: Fredericksburg Hospitalist Group Settles for $4.2 Million

On Friday, June 2nd, 2017, the Department of Justice announced that Fredericksburg Hospitalist Group (FHG) and 14 of its member shareholders will pay $4.2 million to settle allegations of violating the False Claims Act through fraudulent billing. According to the whistleblower complaint, FHG deliberately upcoded evaluation and management (E&M) codes to their highest levels prior to submitting the claims to Medicare and other federal health insurance programs. The DOJ asserts that the fraudulent practices unnecessarily inflated the amount of money reimbursed to FHG from federal healthcare payors. The qui tam relator’s percentage of the whistleblower settlement has not yet been disclosed.

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