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Whistleblower Claims Medicaid Fraud Resulted in Harm to Mothers and Babies

According to a recently unsealed whistleblower lawsuit, two health care providers in Indiana put the health of mothers and newborns at risk in a Medicaid fraud scheme that placed the care of low-income, pregnant mothers in the hands of lower-cost midwives rather than doctors. The suit alleges that the health care providers -- IU Health and HealthNet Inc. -- then falsely billed Medicaid for doctor-provided services.

The whistleblower, who used to work for HealthNet, additionally claims that the lower-quality care resulted in permanent injury to babies and death to mothers and fetuses. According to the suit, the whistleblower was fired four months after she brought her concerns about poor care to the attention of IU Health executives.

The suit also names the Medicaid claims processor MDWise Inc. as a defendant.

Under the federal False Claims Act, whistleblowers can file lawsuits on behalf of the government and receive a percentage of any amount that is recovered. In this case, the whistleblower claims that the three defendants defrauded Medicaid of millions of dollars and accepted kickbacks.

The suit, which was unsealed in March, was originally filed in December 2013 and later amended in October 2014.

If you have questions about a similar situation, then don't hesitate to speak with a False Claims Act attorney. A lawyer with experience in representing whistleblowers can explain your options for bringing a claim under the False Claims Act or any similar state laws.

To learn more about these matters, please see Shepherd, Finkelman, Miller & Shah's Qui Tam Claims overview.

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