The Appellate Division has upheld a $718,000 settlement obtained by Kennedy Vuernick against the owner of ambulatory care facilities over charges that he bilked the state’s charity care fund.
Kennedy Vuernick represented the two whistleblowers, Allstate Insurance Company and Medical Investigation Group, Inc. The False Claims Act suit alleged that the clinic owner had underreported income at his facilities, in order to reduce the amount they had to pay to the New Jersey Health Care Subsidy Fund. The fund reimburses hospitals for charity care they provide to people who cannot afford to pay hospital bills.
The settlement amount was paid to the State to benefit the Health Care Subsidy Fund. The whistleblowers were awarded a percentage of the recovery for reporting the matter and litigating the case. The State declined to intervene, and Kennedy Vuernick litigated the matter through the trial and appellate courts.
The case is State of New Jersey ex rel. Allstate Insurance Co. et al. v. Harshad Patel et al., Docket No. A-1437-18 (App. Div. 2019). The Law360 article can be viewed here: https://www.law360.com/articles/1225595/nj-clinics-can-t-slip-settlement-with-allstate-in-fraud-case.
