Updates
May 20, 2016
Good news may be in sight for businesses and health care providers. 

On April 28, 2016, the House Judiciary Committee’s Subcommittee on the Constitution and Civil Justice once again considered potential updates to the federal False Claims Act. Those in favor of reform touted the hearing as a first step toward commonsense changes and improvements targeted at promoting compliance and rooting out and preventing fraud in the first instance. 

The Subcommittee, which last took up the issue of FCA reform in July 2014, heard testimony from two health care lawyers, a health care system CEO, and former deputy United States Attorney General, Larry Thompson. The testimony focused principally on two proposed reforms: 
  • Reduced awards for corporations that adopt gold standard corporate compliance programs 
  • Requirement that corporate whistleblowers report frauds internally before filing qui tams
Both proposals drew sharp criticism from the relators’ bar and other opponents of FCA reform. 

To view the full alert, click here.