Multi-hospital health system negotiates favorable resolution of multi-year False Claims Act investigation related to allegations of untimely repayment of overpayments

Client(s) Multi-hospital health system

Jones Day represented a health system in a so-called "reverse False Claims Act" investigation conducted by the DOJ, U.S. Attorney's Office for the Eastern District of Michigan, and the Michigan Attorney General. The investigation stemmed from a qui tam suit alleging the health system carried very high credit balances, which included many millions of dollars in overpayments by government payors. The government claimed that health system either did not repay overpayments it received from government payors or failed to timely repay the overpayments. Jones Day challenged the factual and legal underpinning of the government's theory, which resulted in a settlement that represented less than anticipated defense costs had the matter proceeded to litigation.