Avoiding Qui Tam Lawsuits by Properly Handling Disgruntled Employees

The greatest compliance enforcement risk facing health care providers is the risk of a lawsuit filed under the qui tam provisions of the False Claims Act. Disgruntled employees or former employees often file qui tam lawsuits to get even for the wrongs they believe they have suffered or are experiencing at work, through qui tam allegations that are frequently unrelated to their workplace issues. Accordingly, the malcontent employee must be understood as posing potential risk to an organization over and above a traditional human resources challenge. Health care providers face a substantial risk that a disgruntled employee or former employee will file a qui tam action. There are a number of ways that providers can mitigate that risk, such as by implementing procedures intended to channel regulatory complaints through the provider's compliance program. In addition, when the provider elects to enter into a severance agreement the provider should insist on including certain provisions that can reduce the risk of a qui tam action.