Prime Healthcare Can't Slip $50M Medicare Billing FCA Suit

By Daniel Siegal (November 20, 2014, 9:47 PM EST) -- A California federal judge on Thursday rebuffed Prime Healthcare Services Inc.'s bid to dismiss a False Claims Act suit alleging the hospital group overcharged Medicare and Medicaid over $50 million by falsifying admissions information, accepting a government statement that the allegations weren't public before the suit was filed.

PHS had moved to dismiss relator Karin Berntsen's FCA claims on the grounds that her allegations had been disclosed in news media before she filed her complaint, and that thus she is not an original source of the allegations. The FCA states that the court "shall dismiss" a claim not brought by an...

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