Image of nurses' hands at computer keyboard

The Supreme Court this week laid down strict rules regarding information sources in False Claims lawsuits.

A private individual who sues under the False Claims Act must be an original source of the allegations in the complaint, the Supreme Court ruled in a 6-2 decision. Providers, including the American Health Care Association, last fall filed an amicus brief calling for strict rules when private individuals bring False Claims cases based on public information.

Information held in the public domain cannot make up the basis of the allegations in the complaint, the high court ruled. When a complaint is based on public information no jurisdiction exists for the court to hear the case, the court said. The decision stemmed from the case, Rockwell v. United States. The court questioned whether the source of information in the lawsuit was a former employee who had first-hand knowledge of fraud because the information also was available in the public domain.

Beginning Jan. 1, healthcare providers who receive Medicaid payments totaling $5 million or more per year have been required to provide information to their staff on the federal False Claims Act and its whistleblower protections, according to the CMS guidance.