Facts

Elma Dresser worked as a sleep technician for Qualium Corporation. She filed a qui tam whistleblower suit against Qualium and others. The United States of America intervened in several claims within the action.

The U.S. declined to intervene in the action with respect to two sets of allegations, that defendants dispensed durable medical equipment with unlicensed personnel, and that defendants provided illegal kickbacks to doctors to induce patient referrals for sleep studies.

PLAINTIFF'S CONTENTIONS:
The federal government contended that defendants knowingly submitted false claims to the federal government programs, including Medicare, relating to their diagnostic sleep studies and sleep-disorder related medical devices. The United States asserted that the claims were false in part because defendants used non-credential technologists to perform the studies. Relator asserted that the claims were also false because defendants used non-credential technologists to perform the studies and contended the studies in locations not approved by Medicare. Relator additionally contended that defendants employed non-licensed personnel to dispense medical devices and provided illegal kickbacks to doctors to induce patient referrals for the studies, in violation of the Anti-Kickback statute.

DEFENDANTS' CONTENTIONS:
Defendants initially moved to dismiss the U.S.'s complaint in intervention and Dresser's first amended complaint. After both the U.S. and Dresser amended their pleadings, defendants renewed its motions to dismiss. The court granted defendants' motions to dismiss in part (applying the recently decided U.S. Supreme Court case of Universal Health Servs. v. United States ex rel. Escobar) and denied them in part. Defendants subsequently answered both complaints and denied all material allegations.

Result

The parties settled for $2.6 million.