In 2016, the United States Supreme Court issued its decision in Universal Health Servs. v. U.S. ex rel. Escobar which dealt, in part, with how the “materiality” requirement should be enforced in False Claims Act (“FCA”) cases. The Escobar Court confirmed that the false claims at issue “must be material to the Government’s payment decision in order to be actionable under the [FCA].” The Court described this standard as “demanding” and “rigorous,” and explained that a material misrepresentation is one that goes “to the very essence of the bargain.” According to the Court, this requirement helps ensure that the FCA does not, among other things, become an “all-purpose anti-fraud statute.”

Originally published in Birmingham Medical News.