Department of Juctice

Health Tech, Payers, Legal, Providers
Washington, DC USA July 29, 2024: Exterior of the U.S. Department of Justice building in downtown Washington, DC

DOJ Doubles Down on Healthcare Fraud Enforcement with New West Coast Strike Force

The Department of Justice’s new “West Coast” strike force targets Arizona, Nevada and Northern California — regions flagged for rising Medicaid, hospice and tech-enabled fraud risks. Legal experts say the effort signals a broader shift toward data-driven enforcement, as regulators ramp up their scrutiny of telehealth companies and billing automation software.

Legal

DOJ, Ohio File Antitrust Suit Against OhioHealth Over Payer Contracts

The Department of Justice and the state of Ohio filed an antitrust lawsuit against OhioHealth this week, alleging the health system used “all-or-nothing” contracts that force insurers to include all of its hospitals and physicians. The case highlights federal and state scrutiny of hospital consolidation and restrictive contracting practices — with potential implications for payers, patients and healthcare markets across the country.

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Legal

US Sues Rite Aid for Ignoring Glaring ‘Red Flags’ in Opioid Prescriptions

The Department of Justice filed a lawsuit against Rite Aid, accusing the pharmacy chain of filling hundreds of thousands of opioid prescriptions that had “obvious, and often multiple, red flags.” The DOJ claimed that Rite Aid violated the Controlled Substances Act by filling unlawful prescriptions for addictive drugs, as well as the False Claims Act when the chain sought reimbursement from federal healthcare programs for these prescriptions.