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False Claims Act Defense Implications for Health Care Providers

Wednesday, January 10, 2024
10:00 am11:00 am

This webinar will feature a presentation on the U.S. Supreme Court decision in United States ex rel. Schutte v. SuperValu, handed down at the end of last term. Amanda Santella, partner at O’Melveny & Myers in Washington D.C., will explain the background of the decision, the Court’s reasoning, and the significant implications for the business operations of providers who receive payment from federal health care programs. This webinar is for AHA members-only. O’Melveny & Myers will make CLE credit available for this webinar.

The SuperValu decision considered the criteria surrounding a defense (the Safeco defense) often used in False Claims Act (FCA) cases premised on ambiguous legal provisions. Safeco provided a powerful defense to the FCA knowledge element in cases where the defendant could demonstrate an objectively reasonable interpretation of the ambiguous provision at issue. But the Court in SuperValu rejected the application of the Safeco defense to FCA cases, holding instead that the relevant inquiry for FCA knowledge is the defendant’s subjective state of mind and understanding of the relevant legal requirement.

The American Hospital Association and America’s Health Insurance Plans (AHIP) filed a joint amicus brief in the case. The brief argued that the federal government’s “erroneous construction and expansion of the FCA threatens the legitimate business activities of every government contractor, hospital, healthcare provider, health insurance provider, and grant recipient in the nation,” and would “ultimately divert resources away from the primary missions of AHA’s and AHIP’s members: caring for patients, reducing the cost of care, and ensuring a healthy citizenry.” Unfortunately, the Court did not reach the policy issues raised, noting that it did not need to address policy arguments given the presence of clear statutory text. This webinar will address the likely practical consequences of the Court’s decision as well as litigation strategies that health care providers should consider when navigating FCA risk going forward.   

Speakers:

Amanda Santella
Partner
O’Melveny & Myers
Washington, D.C.

AHA Moderator:

Chad Golder
General Counsel & Secretary
The American Hospital Association
Washington, D.C.