Mark Neuberger of Foley & Lardner has a caution for employers in the healthcare sector. “There has been a veritable explosion of recent False Claims Act whistleblowers bringing major actions against health care organizations,” he writes in this recent blog post. The settlements from these claims mean big payouts for the whistleblowers who can expect to recover 15 percent to 25 percent of any damages. And like most employment laws, the FCA also contains an anti-retaliation provision, meaning employers must pay double the damages if they discharge or discipline a whistleblower.
Neuberger says that the issue in healthcare is compounded by the current trend of doctors giving up independent practices and becoming employees, rather than independent contractors. “As health care organizations increasingly employ physicians, another federal law, known as the Stark Act, complicates compliance issues and increases the change of a potential whistleblower action under the FCA,” he explains.
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