2017 Health Care Enforcement Review: Materiality Under FCA

By Laurence Freedman and Jordan Cohen (January 18, 2018, 11:44 AM EST) -- Throughout 2017, the lower courts built upon the standard for determining materiality under the False Claims Act established by the U.S. Supreme Court in Universal Health Servs. Inc. v. United States ex rel. Escobar, 136 S. Ct. 1989 (2016). In Escobar, decided in June 2016, the court endorsed the "implied false certification" theory of liability under the FCA, premised on a "rigorous" and "demanding" element of "materiality." As expected, this decision triggered a spate of litigation over what "materiality" means, and how to apply this requirement....

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