Judge Backs FCA Extrapolation In Nursing Home Fraud Suit

Law360, New York (September 29, 2014, 7:47 PM EDT) -- Government attorneys can extrapolate from a small sample of billing statements to try to hold nursing home operator Life Care Centers of America Inc. liable under the False Claims Act for a vast amount of alleged Medicare fraud, a Tennessee federal judge ruled Monday in a closely watched whistleblower case.

The decision from U.S. District Judge Harry S. Mattice Jr. was important because little case law exists on the question of whether extrapolation is appropriate under the FCA, and because the practice can dramatically increase the number of claims deemed fraudulent without individualized proof.

In the case of Life Care Centers...

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