With Fraud Rampant, Federal Court Decision Could Kill “Qui Tam” Lawsuits
Striking major provision of qui tam lawsuits could hurt efforts to reduce fraud There is little doubt that fraud, waste, and abuse (FWA) is rampant in the American healthcare system. FWA ranges from gross inefficiency and poor use of healthcare resources all the way to outright illegal activity. In between there are all sorts of over-utilization and excessive testing. Outright fraud is up to 10% of our entire healthcare expenditures each year. FWA is likely up to 25%. With national healthcare expenditures expected to hit $5 trillion in 2024, up to $500 billion each year is fraud and $2.5 trillion is combined fraudulent, wasteful, or abusive spending. That is what makes the recent U.S. District Court of the Middle District of Florida decision on so-called qui tam lawsuits (I will call them qui tams from here on) very troubling. Federal Judge Kathryn Kimball Mizelle ruled last month that whistleblowers cannot file