High Court Avoids Straightforward False Claims Ruling But Sets Limits For Future Cases
In its 8-0 decision on Universal Health Services v. Escobar, the court tried to strike a balance between combating health care fraud and protecting companies from what could be viewed as limitless False Claims Act cases, experts say.
Reuters:
U.S. Top Court Puts Some Limits On Contractor Fraud Lawsuits
The U.S. Supreme Court on Thursday imposed some limits on the kind of fraud claims that can be brought against federal contractors in a case involving a suit against one of America's largest hospital operators over a woman's death at one of its facilities. But the 8-0 ruling was not the broad victory for business sought by the company, Universal Health Services, and other healthcare providers fearful of suits under the U.S. False Claims Act, which lets individuals make claims that the federal government has been defrauded. (6/16)
Los Angeles Times:
Divided Supreme Court Once Again Decides A Case Without Settling It
The eight-member Supreme Court showed again Thursday it can issue rulings in significant cases without actually deciding who wins. The justices issued a unanimous 18-page opinion in a major case of healthcare fraud that had appeared to leave them sharply divided during oral arguments in April. They achieved agreement by adopting some key arguments of each side. Then they sent the entire dispute back to a federal appeals court to take a second look. This method of ruling without deciding has emerged in response to the death of Justice Antonin Scalia and the lack of a tie-breaking vote in closely contested cases. (Savage, 6/16)
The Washington Post:
High Court Says Law Requires More Contracts For Veteran-Owned Small Businesses
The Supreme Court decided Thursday that the Department of Veterans Affairs must set aside more contracts to be filled by veteran-owned small businesses. The court was unanimous that the department has not fulfilled its obligation to steer more business to small companies owned by veterans or service-disabled veterans simply by meeting its annual goal. The decision is likely to help more veteran-owned businesses compete for the billions of dollars in contracts the department awards. (Barnes, 6/16)
Bloomberg:
Contractors Get Partial Win At Supreme Court On Fraud Suits
The U.S. Supreme Court on Thursday limited the reach of a whistle-blower law designed to ferret out fraud, in a mixed ruling for health-care companies and other government contractors.
The justices unanimously told a lower court to revisit a ruling that let Universal Health Services Inc. be sued under the U.S. False Claims Act for allegedly using unlicensed and unsupervised staff at a counseling center in Massachusetts. The suit is being pressed by the parents of a girl who died of a seizure after being treated at the facility. (Stohr, 6/16)