Mass., Feds May Move To Intervene In Escobar FCA Case

Law360, Boston (January 18, 2017, 10:52 PM EST) -- Lawyers for the commonwealth of Massachusetts and the federal government told a federal judge in Boston Wednesday that they may recommend intervening in the Escobar case against Universal Health Services, a significant development for a closely watched False Claims Act suit.

Relators Julio Escobar and Carmen Correa claim that the hospital management chain filed false claims against Massachusetts’ Medicaid system by using unlicensed therapists in violation of the program's regulations. They brought the case after Yarushka Rivera, Escobar’s stepdaughter and Correa’s daughter, died while in the care of a UHS mental health facility in Lawrence, Massachusetts.

The intervention by the U.S. and Massachusetts in...

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