CARES Act Grants Could Spark False Claims Act Issues

While CMS Administrator Seema Verma touted that Congress’ COVID-19 provider grant funds would have “no strings attached,” agreeing to the assistance could open providers up to False Claims Act liability risks. Many providers on April 10 received part of a $30 billion fund created in the Coronavirus Aid, Relief, and Economic Security Act, as well as a list of terms and conditions from HHS for keeping the money. Several of the terms and conditions have prompted providers to seek counsel from their attorneys. Even if providers aren’t technically filing a claim and didn’t apply for the grants, they are not allowed to keep any money they aren’t legally eligible for and could be penalized for “reverse false claims.”

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Source: https://www.modernhealthcare.com/legal/cares-act-grants-could-spark-false-claims-act-issues

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