I’ve represented nurses for over
35 years. I’ve listened as hundreds of
nurses describe their struggles with administrators determined to cut corners
to make money. They tell of staffing
problems that make it impossible for them to provide the care their patients
desperately need. When the nurse
complains too loudly, she finds herself fired or reported to the Nursing Board on
trumped up charges. As North Carolina
law provides little recourse for mistreated employees, nurses often leave the
profession for better jobs. But two
nurses recently made headlines. They
fought back and made quite a lot of money doing it.
Vanessa Absher and Lynda Mitchell
worked for several years as nurses at the Momence Meadows Nursing Center in
Illinois. Medicare and Medicaid covered
the care for most of the patients at the 130 bed skilled nursing facility. The nurses complained of dismal conditions at
the home. Often, patients did not
receive medication, food, or water. They
lay for days in their own excrement. They
developed bed sores, scabies infections, and blood poisoning. Management ordered staff to falsify patient
records, medication charts, and staffing records to hide patient injuries and
deaths. When the nurses objected, the
owner ordered them to “shut your mouth.”
Management finally fired one of the nurses. The other one quit. Neither gave up.
The nurses filed an action under
the federal and state False Claims Acts.
They alleged that Momence had fraudulently billed the government for
care that it did not provide to the patients.
They also claimed that Momence fired them for blowing the whistle on the
draconian conditions at the home.
As Momence would soon learn, the
law imposes extreme penalties for filing fraudulent claims for government money. Assume the defendant files a false Medicare
claim for $25.00. Initially, the penalty
is three times the amount of the false claim.
Now, the defendant has to reimburse the government $75.00. But, an additional penalty of up to $10,000
can be added for each false claim.
Based on these laws, the jury
returned a verdict of over $28 million against Momence. Because whistleblowers are entitled to a
share of the damages awarded, the nurses’ share could total more than $7
million, plus court costs and attorney fees.
This is in addition to the $400,000 that the jury awarded the nurses in
connection with their own claims against the defendant.
It took almost nine years for the
nurses to get a jury verdict in the Momence case. Appeals can tie up the courts for several
years to come. And the nurses may have a
bit of trouble collecting their money. Courts
earlier ruled that Momence’s insurance company was not liable for the damages. Accordingly, the defendants’ assets are the
sole source of funds for the verdict. Fortunately,
the defendants can’t discharge the debt in bankruptcy court. And the government will help the nurses collect
the damages. Even the Mafia has paid up
when the government demands its money.
North Carolina has its own False
Claims Act. It provides for treble
damages and penalties of up to $11,000 for each false claim. Whistleblowers can receive up to 30% of
damages collected. In addition, any
whistleblower who suffers retaliation from his employer-defendant is entitled
to reinstatement and twice the lost back pay.
Again, the employee is entitled to attorney fees and court costs.
The state and federal False
Claims Acts give nurses and other health care workers powerful weapons to use
in fighting back against employers who commit health care fraud – even in North
Carolina.