Health Care Providers May Face Increased Lawsuits Over Use of CARES Act Funds

Health care providers may face whistleblower suits and increased scrutiny by the Department of Justice (DOJ) related to the receipt of funds under the CARES Act. When providers accept funds, they must sign an attestation agreeing to the terms and conditions, which specify that the money can only be used to prevent, prepare for, and respond to COVID-19 or reimburse for expenses and lost revenues attributable to the virus. While HHS has said it doesn’t currently have any enforcement actions against providers regarding the use of these funds, potential whistleblowers are contacting attorneys to explore filing qui tam suits under the False Claims Act to alert the DOJ to potential misuse. More information is available here.

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