Hospital Favorably Settles Qui Tam Action

A large hospital resolved allegations that it improperly billed for inpatient services. Faegre Drinker represented the hospital in the matter, a qui tam action filed under the False Claims Act by a former employee alleging that the hospital billed for inpatient services that should have been billed on an outpatient basis. The former employee further alleged that the hospital retained a consulting firm to advise on whether patients placed in observation status qualified for an inpatient admission, advice that the former employee claimed was overly aggressive and with which treating physicians did not agree. After the close of discovery, the matter settled on favorable terms.