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Here Come the Feds: The Significant Impact of Healthcare Reform on Government Investigations and Enforcement
By Holly Pierson
For the heavily regulated and already embattled healthcare industry, the
recent changes in the healthcare arena by the Fraud Enforcement and
Recovery and the Patient Protection and Affordable Care Act (P.L.
111-148) as amended by the Health Care and Education Reconciliation Act
of 2010 (together, the Healthcare Reform Law) are largely unwelcome
news. The expansion of potential liability and the Department of
Justice’s authority and ability to investigate fraud makes
investigations into and challenges of providers’ practices by both the
government and individual whistleblowers considerably more likely. While
healthcare is a highly specialized practice area, all white collar
practitioners could benefit from a general understanding of the recent
changes in this area and the likely practical effect of these changes.
I. Increased Emphasis Upon, and Funding for, Fraud Investigations
In May 2009, the Fraud Enforcement and Recovery Act (FERA) allocated
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