Dentons secures dismissal of False Claims Act action for TMC Healthcare

Following a five-year Department of Justice investigation, Dentons secured the dismissal with prejudice of a whistleblower-initiated False Claims Act action involving its client, TMC Healthcare, a locally governed nonprofit regional and teaching hospital. The case alleged that certain hospital actions and inter-governmental transfers caused improper claims to the Centers for Medicare & Medicaid Services (CMS).

Dentons built a number of formidable defenses for TMC, including gathering, through various means, evidence to establish that the arrangements were open, well-documented and known to governmental regulators. The Department of Justice ultimately declined to intervene, and the whistleblower subsequently dismissed the case with prejudice. The favorable result ended litigation seeking amounts that could have financially crippled the nonprofit health system.

Dentons' defense team was led by partners Sean Cenawood and Charles Luband and combined litigation, healthcare regulatory and reimbursement experience. Partner Catharine Homer provided litigation support, while managing associates Danika Rothwell and Callan Smith advised on healthcare regulatory and reimbursement issues central to the defense.

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