Healthcare News & Insights

Justice Dept.: 2011 record-setting year for fraud settlements

The Justice Department announced that fiscal year 2011 saw a record amount  — more than $3 billion — in settlements and judgments. That’s the second year in a row the department has recovered more than $3 billion in civil fraud cases against the government. Between January 2009 and September 2011 (the end of the ’11 fiscal year) the government recovered a total of $8.7 billion. That’s the largest three-year collection total in the history of the department.

The total for 2011 includes a record $2.8 billion in recoveries under the whistleblower provisions of the False Claims Act, which is the government’s primary civil remedy to redress false claims for federal money or property, such as Medicare benefits, payments on military contracts, and federal subsidies and loans. $2.4 billion of that money came from cases involving fraud against federal health care programs.

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