top of page

$2.4 Billion Recovered From Healthcare Fraud Cases Last Year

Happy New Year everyone! On behalf of the entire Allegiant Experts team, we’d like to offer you our warmest wishes for 2018. We’d also like to take this opportunity to thank each and every one of our clients and communicate our commitment to supporting organizations by bridging the disciplines of law and medicine.

At Allegiant Experts, we’re well aware that attorneys are experts on legal issues. However, we are experts on nursing practice and the health care system. That is how we bridge the gap. Allegiant Experts supports attorneys and special investigation units, in part, by acting as specialized members of the litigation or investigation team. Our professional contributions are often critical to achieving a fair and just outcome for all parties.

Readers of our blog are well aware of how rampant cases of healthcare fraud and medical misconduct are in the United States. Over the past couple of years, we have committed our blog to covering the various stories of such incidences in our nation. Doing so has shown us that the number of incidences is only likely to rise. This is evidenced by the amount of money recovered from federal healthcare fraud cases by the Department of Justice in 2017.

Just how much did the DoJ recover from healthcare fraud schemes last year?

As reported by Thomas Beaton on just before the new year, the DoJ recovered a total of $2.4 billion. “Healthcare-related fraud recoveries accounted for 64 percent of the DoJ’s $3.7 billion total haul across all industries in 2017, including the housing and mortgage sectors, small business contracts, military contracts, and additional areas of oversight that fall under the False Claims Act,” he explains.

Beaton goes on to note that healthcare fraud recoveries surpassed the $2 billion mark for the second year in a row. The dollar amount represents fraud schemes committed by a wide range of perpetrators. Drug companies, hospitals, pharmacies, health IT vendors, laboratories and physicians are among them.

Chad A. Readler is the Acting Assistant Attorney General of the Justice Department’s Civil Division. “The recoveries announced are a testament to the efforts of these valuable public servants and a message to those who do business with the government that fraud and dishonesty will not be tolerated,” he is quoted as saying in the article.

Shire Pharmaceuticals was at the center of one of the most notable healthcare fraud cases in 2017.

The Lexington, Massachusetts-based company settled their False Claims Act allegations for a whopping $350 million. As Beaton explains, they used a kickback scheme to entice providers to use a product called Dermagraft in order to treat diabetic foot ulcers. The $350 million settlement stemmed from allegations that Dermagraft sales people used unlawful techniques such as buying dinners, drinks, entertainment and travel for physicians to sell the product.

“Shire sales employees were also believed to make unwarranted payments to entice physicians to promote Dermagraft during speaking engagements and in case studies,” elaborates Beaton, “Government officials alleged that Dermagraft sales personnel made direct cash payments, offered credits, and provided rebates to physicians to promote Dermagraft.”

Could you use some assistance in your case dealing with the recovering of losses due to healthcare fraud?

Please don’t hesitate to call the clinical experts at Allegiant Experts at 407-217-5831 or email us at

2 views0 comments


bottom of page