The Department of Justice (DOJ) last week reported nearly $3 billion in recoveries under the False Claims Act (FCA) for fiscal year 2024. These successful FCA cases targeted fraud in healthcare, defense contracting, pandemic relief, and cybersecurity, among other areas.
A significant portion, $1.67 billion, came from healthcare fraud cases, including improper billing practices and kickbacks. DOJ highlighted several recoveries, including two cases in which Whistleblower Partners attorneys are or have been involved as counsel.
The first was a matter involving Community Health Network Inc., which paid $345 million to resolve allegations that it submitted claims to Medicare for services that were referred in violation of the Stark Law. The United States alleged that the compensation Community paid to certain physician groups was well above fair market value, and that Community awarded bonuses to physicians that were tied to the number of their referrals.
The second case involved DaVita Inc., which paid $34.5 million to resolve allegations that it paid kickbacks to a competitor to induce referrals to a former subsidiary that provided pharmacy services for dialysis patients. As part of the improper arrangement, the United States alleged that DaVita agreed to acquire certain European dialysis clinics and agreed to purchase dialysis products from the competitor. The United States also alleged that DaVita paid additional kickbacks to nephrologists and vascular physicians to induce referrals to DaVita’s dialysis centers.
DOJ further highlighted its continuing enforcement efforts related to fraud in the Medicare Advantage (or Medicare Part C) program, which is now the largest component of Medicare, both in terms of federal dollars spent and the number of beneficiaries impacted. In addition to a path-breaking matter involving kickbacks by providers in Medicare Advantage networks, DOJ noted continuing litigation in two cases—one against UnitedHealth Group and the other against Kaiser Permanente consortium—that allege Medicare Advantage program fraud and were brought by Whistleblower Partners’ clients.
Several DOJ recoveries demonstrate the expanding reach of FCA enforcement into emerging areas such as cybersecurity, where government contractors are required to adhere to strict standards. These include a case against Guidehouse Inc., which, together with a co-defendant, paid $11 million to resolve allegations they failed to meet cybersecurity requirements in a contract with New York funded by a federal grant. The contract was intended to secure online environments for New York residents to apply for federal rental assistance during the Covid-19 pandemic.
DOJ’s 2024 results also emphasized aggressive enforcement of pandemic-related fraud, recovering millions from schemes targeting federal relief programs. Key cases involved fraudulent claims for Paycheck Protection Program (PPP) loans, in which businesses and individuals misrepresented their eligibility or falsified applications to secure loans or grants. Pandemic-fraud cases also involved false claims submitted to various federal healthcare programs for services related to COVID-19 testing and treatment. The cases highlight the importance of holding perpetrators accountable to deter further misuse of emergency funds, preserving critical resources intended for those genuinely impacted by the pandemic.
Whistleblowers continued to play a pivotal role in DOJ’s efforts. Of the $2.9 billion in total recoveries reported by the government, over $2.4 billion resulted from lawsuits filed by whistleblowers under the qui tam provisions of the False Claims Act. In addition, whistleblowers filed a record 979 FCA lawsuits in fiscal year 2024, driving significant enforcement efforts in the years ahead.
Whistleblowers are essential to the FCA's success because they expose fraudulent activities often hidden within complex operations. By leveraging insider knowledge or expertise, they reveal misconduct that would otherwise remain undiscovered, recovering billions in taxpayer funds. Whistleblowers also deter fraud through their vigilance and incentivization via financial rewards, aligning personal accountability with public interest.
The attorneys at Whistleblower Partners have significant experience representing qui tam relators. If you would like more information or would like to speak to an attorney at Whistleblower Partners, please contact us for a confidential consultation.
