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IPC Healthcare (IPCM) False Claims Act Shareholder Investigation

This investigation focuses on the board of directors of IPC Healthcare (NASDAQ: IPCM).  The Department of Justice (DOJ) recently announced that it would intervene in in a complaint that alleges that the company over billed Medicare and Medicaid and violated federal false claims act.  This investigation then asks the basic question whether the board of directors violated its duties to shareholders.

DOJ intervenes in pending false claims act lawsuit against IPC Healthcare

On December 9, 2013, the DOJ announced that the government has intervened in a lawsuit charging IPC with fraud in connection with as much as $125 million in revenues obtained from government medical insurers, including Medicare and Medicaid. According to the lawsuit, IPC, knowingly engaged in systematic overbilling for hospital evaluation and management services billed to Medicare, Medicaid, and other health benefit programs, in violation of the False Claims Act. Specifically, IPC is alleged to have encouraged its physicians to bill at the highest levels regardless of the level of service it provided, trained physicians to use higher level codes and encouraged physicians with lower billing levels to “catch up” to their peers. Further, IPC physicians routinely “upcoded,” or sought reimbursement for more expensive medical service than performed. Under the False Claims Act, IPC is liable for three times the damages it caused to the government plus civil penalties.

Did the board of directors of IPC Healthcare breach its duties to IPC shareholders?

Shareholders of IPC Healthcare may complete the web form on this page to share their concerns and discuss their rights.

  • How active has the board of directors been in the past to address the risk of a Medicare and Medicaid fraud?
  • What board committee was assigned the task of overseeing compliance with federal procurement laws and what do the minutes of those committee meetings reveal about the level of board oversight?
  • Did the board insist the company have a independent compliance  officer who reports outside of the normal organization reporting structure?
  • DId the board have policies about hiring outside providers and contractors and did the board insist on a review of the compliance policies of those outside firms?

 

Current Case Status: 
This is an investigation only and no case has been brought.
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