On June 21, 2022 the Supreme Court of the United States granted certiorari in Polansky v. Executive Health Resources, a False Claims Act lawsuit appealed to the Third Circuit after the District Court dismissed at the request of the government. The Supreme Court’s decision is anticipated to resolve a split among the circuit courts of appeal regarding the legal standard applicable when the Department of Justice moves to dismiss qui tam actions brought on behalf of the government.
The whistleblower lawsuit alleges that Northern Arizona Healthcare Corporation, Northern Arizona Orthopedic Surgery Center, LLC, and Flagstaff Medical Center, Inc., which collectively operate healthcare facilities throughout northern Arizona, violated the False Claims Act (“FCA”), 31 U.S.C. § 3729, et seq., and Anti-Kickback Statute (“AKS”), 42 U.S.C. § 1320a-7b, by purchasing a physician-owned surgery center at an inflated price in order to reward the physicians for their past business and induce them to refer future business to Defendants.