Skip to Content

Get Your FREE Consultation

Blog

NextCare Agrees to Pay $10 Million to Settle False Claims Allegations

August 1, 2012

NextCare Inc. which operates urgent care facilities with locations in North Carolina, Arizona, Colorado, Texas, Ohio, and Virginia, recently agreed to pay $10 million to resolve False Claims Act allegations. The settlement was announced by the Justice Department in early July 2012. The settlement resolved allegations that NextCare submitted false claims to Medicare, TriCare, and the Federal Employees Health Benefits Program, as well as State Medicaid programs, by billing for unnecessary allergy, H1N1 virus, and respiratory panel testing. The government also charged NextCare with inflating its billings for urgent care medical services in the years under review, a practice known as “upcoding.”

The $10 million settlement was announced by the U.S. Attorney for the Western District of North Carolina. The allegations of fraud were initially raised by a former NextCare employee who stepped forward as a whistleblower and reported NextCare’s fraud. As a whistleblower bringing forth the fraud allegations (also known as a “relator”), the former employee will receive $1.614 million as her share of the recovery.

The settlement of charges against NextCare is part of the government’s effort to combat healthcare fraud and thereby control healthcare costs. The Department of Justice has redoubled efforts to reduce and prevent Medicare and Medicaid financial fraud. Since the beginning of 2009, the Justice Department has recovered more than $7.7 billion in False Claims Act cases involving fraud against federal healthcare programs.

The substantial award for the whistleblower is indicative of the importance of whistleblowers in helping the government and private whistleblower (also known as “qui tam” attorneys) combat fraud committed against the government. Awards for whistleblowers typically range between 15% and 25% of the recovery in cases in which the government intervenes and prosecutes the case. Whistleblowers are often current or former employees of a wrongdoing company who have direct knowledge of the company’s fraudulent conduct and the government overcharges.

TALK TO US NOW
FOR FREE
No Win, No Fee

Review Us

Martin & Jones, PLLC logo

“Thank you so much for everything that you did for Gene and I in our lawsuit and trial. We appreciate all of the hard work, long hours and care that was shown to us. All of you are such special people to us. We are so fortunate to have been represented by the five of you. I hope that you got the chance to get some well deserved rest and sleep.  Thanks again for everything. Sincerely…”

Contact Our North Carolina Personal Injury Law Firm

for a Consultation for Your Accident or Medical Malpractice Claim

Call us at 800-662-1234
TALK TO US NOW
FOR FREE
No Win, No Fee

The law firm you choose makes a difference. If you are the victim of an accident or an illness that someone else caused, the North Carolina personal injury law firm of Martin & Jones has the depth of experience, skills and sensitivity to make your road to recovery as smooth as possible. Whether you have experience with the legal system or have never hired a medical malpractice or personal injury lawyer before, our attorneys and staff will do our best to answer your questions, provide clear advice and prepare you and your family for what to expect. If you would like more information or to meet with one of our attorneys, please fill out the form below or call us at 800.662.1234.