2nd Circuit:  No Conversion In Case Of 1st Impression Over FCA Medicare Payments

(October 17, 2023, 1:09 PM EDT) -- NEW YORK — In a case of first impression on interlocutory appeal, the Second Circuit U.S. Court of Appeals on Oct. 16 reversed and remanded a district court decision denying dismissal to a parent company and its affiliated hospital and nursing home in a qui tam suit alleging violations of the False Claims Act (FCA) related to submitting Medicare and Medicaid reimbursement claims without disclosing alleged unlawful conversions, finding that federal law is not violated when the recipient of a “payment is under no obligation to utilize the funds in any particular way.”...