Rejecting Expansive FCA False Certification Theory

Law360, New York (October 30, 2008, 12:00 AM EDT) -- A United States Court of Appeals has rejected a theory of False Claims Act ("FCA") liability that, if adopted, could have had devastating consequences to hospitals and other Medicare providers.

In United States ex rel. Conner v. Salina Regional Health Center, Inc., ___ F.3d ___, 2008 WL 4430668 (10th Cir. Oct. 2, 2008), the Tenth Circuit held that an allegedly false certification on a hospital's Medicare cost report does not automatically render false all claims submitted by that provider.

Instead, the court imposed a materiality requirement...
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