The health care industry generates more False Claims Act (FCA) exposure than any other sector of the American economy – and the significant investment of private equity (PE) in health care creates exposure for PE firms that own and operate health care businesses. As context, the Department of Justice (DOJ) reported over $6.8 billion in FCA recoveries for fiscal year 2025, with health care fraud accounting for the lion’s share. Whistleblowers filed qui tam lawsuits at record-breaking rates in 2025, and growth in enforcement actions shows no sign of abating. Further, under the current administration, the government has made significant investment in technology, including AI, with the purpose of pursuing cases independently that are not based on whistleblower filings.
Read the full article: The False Claims Act’s Reach: What PE Investors in Healthcare Need to Know //
Source: https://www.reedsmith.com/articles/private-equity-behind-the-scenes/the-false-claims-act-s-reach-what-pe-investors-in-healthcare-need-to-know/