Some readers of our Milwaukee employment law blog might sleep better tonight after reading about a recent whistleblower settlement. The $2.6 million agreement resolves allegations of Medicare fraud in a False Claims Act lawsuit filed against the owners of a chain of sleep clinics.
The two California residents ran a chain of 20 Bay Area sleep clinics and a medical equipment supply company. A sleep technician filed a whistleblower lawsuit in 2012 claiming that the pair fraudulently billed Medicare for sleep-testing services.
The Department of Justice joined the legal action back in 2015.
The lawsuit also alleged that the companies violated Medicare regulations prohibiting sleep-testing firms from selling medical devices. In addition, the whistleblower charged that the tests were performed in unapproved facilities, and then filed falsified documents making it appear that the tests were performed at approved locations.
The suit also alleged that the company billed Medicare for services by sleep technicians who did not have required certification and licensing.
The whistleblower will $545,000 as her part of the settlement, a local newspaper reported.
While the defendants do not admit liability, they do agree to pay millions of dollars and to stop their participation in Medicare for the next 3 years.
Anyone in the Milwaukee area who has suffered retaliation for reporting fraud against the federal government can speak with an experienced attorney at the law offices of Alan C. Olson & Associates, s.c. Our skilled lawyers can discuss with you a qui tam lawsuit and other legal options.