Third Circuit Finds Documentation Issues May Be “Material” under the FCA

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Bradley Arant Boult Cummings – In its recent decision in Druding v Care Alternatives, the Third Circuit continued its trend of rulings unfavorable to FCA healthcare defendants.

In the latest appeal of U.S. ex rel. Druding et al. v. Care Alternatives et al., the court held that medical record-keeping issues and documentation errors may be material under the False Claims Act. Reversing the lower court’s grant of summary judgment, the court found that a hospice provider’s violations of the Medicare requirement that medical records “support” a physician’s diagnosis were not “isolated incidents,” and that poor record-keeping patterns and practices are enough to withstand summary judgment.