Appeals court affirms dismissal of physician鈥檚 FCA/AKS claims against hospital

The 6th Circuit Court of Appeals yesterday a district court鈥檚 decision dismissing a lawsuit that sought to turn a hospital鈥檚 decision not to hire a physician into a False Claims Act suit based on the Anti-Kickback Statute. Specifically, the Court held that this decision not to hire did not qualify as 鈥渞emuneration鈥 under the AKS. In addition, the Sixth Circuit adopted a narrower definition of 鈥渃ausation鈥 under the AKS than the United States government requested, siding with Oaklawn Hospital and a friend-of-the-court brief submitted by the AHA and four state hospital associations. In that brief, the AHA further explained that overturning the district court鈥檚 鈥渨ell-reasoned鈥 opinion would vastly expand hospitals鈥 exposure to FCA suits, 鈥渨hich are tremendously expensive to defend throughout a government investigation and litigation even when the suit is meritless.鈥