The False Claims Act and Health Care: 2020 Recoveries and 2021 Outlook

K&L Gates LLP

False Claims Act (FCA) civil fraud recoveries in Fiscal Year (FY) 2020 dropped over US$850 million when compared to those in FY 2019. While the more than US$2.2 billion in recoveries in FY 2020 continued a general downward trend in FCA civil fraud recoveries since 2016,2 the past year’s recovery total was likely affected negatively by the global COVID-19 pandemic, which caused government enforcement delays ranging from curtailed in-person meetings/interviews to extended timelines for responses to civil investigative demands and settlements. The FY 2020 recoveries also do not represent significant actual or pending recoveries totaling over US$3.3 billion, which were not realized prior to the close of FY 2020.3 Given these large, pending recoveries and the nation’s potential emergence from the pandemic during the course of 2021, it is highly likely that FY 2020 will be an outlier, while FY 2021 may prove to be an exceptionally high year in terms of FCA recoveries.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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