Bass, Berry & Sims attorney Brian Roark was quoted in a Modern Healthcare article examining the Department of Justice’s (DOJ) heightened interest in monitoring private equity investment in the healthcare industry. Data shows that settlements in the healthcare industry account for a large majority – 80% between 2017 and 2020 according to the article – of False Claims Act (FCA) settlements.
As Brian points out, the FCA “relies on whistleblowers—also known as relators— bringing lawsuits against their employers, so the uptick in private equity defendants reflects more whistleblowers targeting them in their initial lawsuits that the DOJ later intervenes in.”
“Generally relators will take a dollar from any pocket they can find,” Brian said. “The driver is deeper resources to be able to pay judgments.”
The full article, “Why the Justice Department is Targeting Private Equity,” was published by Modern Healthcare on November 15 and is available online (subscription required).