Universal Health Rips 1st Circ. Over FCA Suit Revival

Law360, New York (April 1, 2015, 4:29 PM EDT) -- Universal Health Services Inc. is accusing the First Circuit of improperly reviving a False Claims Act complaint by unilaterally identifying regulations that whistleblowers never discussed and then misconstruing those regulations to suggest Medicaid fraud may have occurred, newly filed documents show.

UHS voiced its criticism on Monday in a petition seeking rehearing or en banc review. The company asserted that a circuit panel, when reviving the complaint two weeks ago, did so based on a spontaneous review of Medicaid regulations allegedly violated by one of the company’s mental health centers in Massachusetts.

As a threshold matter, UHS argued that the panel...

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