On December 4, 2020, the United States Department of Health and Human Services (HHS) announced the creation of a False Claims Act Working Group. The working group will aim to enhance the relationship between the HHS Office of Inspector General (HHS OIG) and the Department of Justice (DOJ) in combating fraud and abuse by identifying and focusing resources on those who seek to defraud American taxpayers.
Because HHS is responsible for administering multiple programs that involve significant amounts of money being paid to private parties, the agency is in a unique position to be able to work with DOJ to identify and assess potentially fraudulent activities. The working group includes former DOJ prosecutors, former private counsel for healthcare and life sciences companies, and HHS attorneys who have extensive experience with HHS’ most vulnerable payment programs. The working group will identify potential False Claims Act violations and refer them to DOJ and OIG for investigation and potential prosecution. The working group also will aid the DOJ and OIG in False Claims Act actions by providing HHS’ views on the intricate legal frameworks of the agency’s funding programs.
As HHS continues to provide significant funding in a variety of manners to combat the COVID-19 pandemic, the need for government agencies to work together on combatting fraud has become even more important. HHS has found that most private individuals and organizations who have received funds have used them in good faith to combat the pandemic and maintain and strengthen our healthcare system. Two examples of the HHS COVID-19 funding include (1) Operation Warp Speed by which HHS gave billions of dollars for COVID-19 vaccine and therapeutics research, development, distribution, and administration and (2) the Provider Relief Fund, through which HHS distributed more than $100 billion to healthcare providers, including many on the front lines of the pandemic response.
The Working Group will provide enhanced and targeted training to the HHS programs that are most vulnerable to fraud and abuse, which will allow attorneys with the HHS Office of General Counsel and HHS program operators to better detect and refer potential false claims to DOJ and OIG. Working with OIG, the Working Group will also act as a focal point within the agency for consultation about legal requirements and recommendations about alleged violations and will be a conduit to the more than 600 subject-matter attorneys within HHS and their agency clients, who have expertise in HHS’ funding programs.
“Fraud on the federal government is not a victimless crime. Every dollar that goes to fraudsters is a dollar not being used for the important work that HHS programs do for the American people, including to fight COVID-19,” said HHS Secretary Alex Azar. “This working group strengthens our partnership with DOJ and OIG on using the False Claims Act to pursue bad actors and protect taxpayer funds. Ensuring that resources are focused on bad actors will deter would-be fraudsters and avoid burdening those working in good faith to comply with the law.”