What happens to a healthcare provider under the False Claims Act if they are found to be in reckless disregard of the truth?

A healthcare provider found to be in reckless disregard of the truth under the False Claims Act can be held liable for submitting false claims. This means that if a provider submits a claim for payment that they know is not true or has no basis in fact—or if they act with reckless disregard for the truth or falsity of the claim—they can face significant financial penalties and legal repercussions.

The False Claims Act is designed to combat fraud against the federal government, particularly in programs like Medicare and Medicaid. Therefore, demonstrating reckless disregard indicates a level of negligence or a willful ignorance of the truth that is unacceptable. It underscores the legal expectation that healthcare providers must ensure the accuracy and validity of the claims they submit. This liability is intended to deter fraudulent practices and protect government funds, ensuring that only legitimate claims are paid.