LiveCare Settlement Highlights the Enforcement of the Anti-Kickback Statute and False Claims Act in Healthcare

On January 31, the U.S. Attorney’s Office for the Middle District of Florida announced a significant settlement with LiveCare Inc., a Venice, Florida-based provider specializing in remote patient monitoring services for patients with Type 2 diabetes.

Under the settlement, LiveCare agreed to pay up to $4.9 million to resolve allegations that it violated the Anti-Kickback Statute and the False Claims Act.

Understanding the Allegations

The allegations against LiveCare center on two critical areas of healthcare regulation:

1. Anti-Kickback Statute Violations:
   The Anti-Kickback Statute is designed to prevent any form of remuneration intended to induce referrals or generate federal healthcare program business. According to U.S. Attorney Roger B. Handberg, “Violations of the Anti-Kickback Statute undermine the integrity of our healthcare system.” This statement underscores the federal government’s commitment to ensuring that medical decision-making remains free from the influence of improper financial incentives.
2. False Claims Act Claims:
   The settlement also resolves claims brought by private individuals under the qui tam provisions of the False Claims Act. These provisions empower whistleblowers to file actions on behalf of the government and receive a portion of any recovery. Although the claims against LiveCare remain allegations at this stage, the case serves as a reminder of the significant risks associated with non-compliance in the healthcare industry.

The Role of Whistleblowers

A key element of the settlement is the resolution of claims initiated by private individuals acting under the qui tam provisions. The government’s ability to leverage whistleblower actions is a potent tool in combating healthcare fraud.

By allowing private parties to file actions on behalf of the U.S. government, the False Claims Act incentivizes the exposure of fraudulent activities while providing a mechanism for recovering funds misdirected from critical federal programs such as Medicare.

Implications for False Claims Act Litigation: Increased Scrutiny in Emerging Areas

As healthcare technology evolves—especially in areas like remote patient monitoring—the Department of Health and Human Services Office of Inspector General (HHS-OIG) is stepping up its investigative efforts.

Acting Special Agent in Charge Ricardo M. Carcas emphasized that “our agency will continue to thoroughly investigate health care fraud, including the emerging area of allegations related to remote patient monitoring.”

Fraudulent conduct related to healthcare technology places patients at risk of receiving substandard treatment. Companies operating in emerging areas of healthcare technology may be violating established compliance rules, violating the False Claims Act.

Conclusion

Whistleblowers play an important role in combatting fraud and ensuring patient safety in the Healthcare Industry. The LiveCare settlement serves as a crucial reminder of the federal government’s dedication to upholding the integrity of the healthcare system.

By rigorously enforcing the Anti-Kickback Statute and the False Claims Act, authorities signal that no sector—especially rapidly evolving areas like remote patient monitoring—is beyond scrutiny.

Contact Keilty Bonadio for Assistance

If you have information about healthcare fraud or believe you may have been affected by such practices, contact Keilty Bonadio today. Our experienced attorneys can provide the guidance and representation you need to protect your rights and seek justice.

Call us at 410-469-9953 or fill out our online contact form to schedule a free consultation. Together, we can make a difference in the fight against fraud and corruption.