Lexology January 24, 2024
Sidley Austin LLP

A recent False Claims Act settlement between the Department of Justice, a New Jersey hospital, and the hospital’s investors also included a novel Federal Debt Collection Practices Act (“FDCPA”) settlement with the investors, highlighting the government’s continued efforts to pursue investors in the healthcare industry.

The Department of Justice (“DOJ”), on behalf of the Department of Health and Human Services (“HHS”) and the Office of Inspector General (“OIG-HHS”), recently announced a settlement agreement with Columbus LTACH (doing business as Silver Lake Hospital) and its investors. Silver Lake owns and operates a healthcare facility that includes a long-term acute care hospital, whose conduct was at issue. The hospital agreed to pay over $18.6 million in a structured settlement over five years...

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