Kansas Cancer Treatment Facility Settles Whistleblower Lawsuit for $2.9 Million

May 7, 2014 — The nation’s federally funded health care programs are there to help people in need. Medicare fraud by unethical cancer treatment facilities only drives up the soaring cost of health care for everyone. The U.S. Justice Department counts on conscientious whistleblowers to notify the government about health care fraud by filing a False Claims Act lawsuit. The statute’s qui tam provisions give conscientious health care employees a way to do what’s right and be rewarded for it. Insiders who file suit for the taxpayers’ benefit may be compensated with a sizable share of any proceeds from the suit.

Cancer Facility Owner Allegedly Instructed Employees to Bill Health Care Programs for Chemotherapy Drugs Not Administered

A Kansas cancer treatment facility and its owner, Dr. Raj Sadasivan, have consented to pay $2.9 million to resolve a whistleblower lawsuit brought by three former employees. The False Claims Act suit alleged that Hope Cancer Institute submitted false claims for reimbursement to three separate federally funded health care programs — Medicare, Medicaid and the Federal Employee Health Benefits Program. The cancer facility allegedly sought payment for drugs and services that patients never received.
From 2007 to 2011, the government alleged, Sadasivan required Hope Cancer Institute employees to bill the government for cancer drugs at pre-set amounts, even when patients received lower dosages. Sadasivan’s misconduct resulted in the cancer facility’s submission of false claims to federal health care programs that were far in excess of what they should have been. The drugs involved included Avastin, Rituxan and Taxotere, all chemotherapy drugs.
The whistleblowers in the case — Crystal Dercher, Amanda Reynolds and Krisha Turner — were all former employees of Hope Cancer Institute. Under the qui tam provisions of the False Claims Act, they are eligible to receive a share of the government’s settlement.

Health Care Insiders Stand Up to Fight Medicare Fraud

Health care insiders like the ones who worked at Hope Cancer Institute in Kansas are usually among the first to uncover False Claims Act violations. But it’s not easy to speak out against an employer and most tipsters simply don’t know how to file their own whistleblower lawsuit. With qui tam lawyers across the country, Waters & Kraus guides tipsters through the process, ensuring that their interests are protected. Contact us by email or call our False Claims Act lawyers at 855.784.0268 to learn more about standing up to health care fraudsters.

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