From our offices in the Detroit area, Akeel & Valentine, PLC serves clients nationwide.

From our offices in the Detroit area, Akeel & Valentine, PLC serves clients nationwide.

The role of qui tam in combatting healthcare fraud

On Behalf of | Mar 29, 2024 | Qui Tam

In the healthcare sector, ensuring honesty and integrity is important.

One tool for fighting fraud in this area is qui tam, a provision in the False Claims Act that allows individuals to take action against fraudulent activities.

Understanding qui tam

Qui tam is a provision that lets individuals sue on behalf of the government if they know of someone making false claims for government funds. In healthcare, this usually involves fraudulent billing practices, such as charging for services not provided or upcoding to receive higher reimbursements. The individual bringing the suit, known as a whistleblower, can receive a portion of the recovered funds as a reward for their efforts.

The importance of qui tam in healthcare

Healthcare fraud is a significant issue, costing billions of dollars each year. This not only drains valuable resources but also undermines trust in the healthcare system. Qui tam actions are key in detecting and preventing fraud. They encourage individuals to report wrongdoing, which might otherwise go unnoticed. By holding fraudulent parties accountable, qui tam actions help ensure that government healthcare spending benefits those in need.

How qui tam works in healthcare fraud cases

When an individual discovers evidence of healthcare fraud, they can file a qui tam action under the False Claims Act. The government reviews the evidence and decides whether to intervene. If the government chooses not to intervene, the individual may still proceed with the case on their own.

Qui tam actions are a powerful tool in the fight against healthcare fraud. By enabling individuals to act on behalf of the government, qui tam helps the healthcare system and its beneficiaries.