Successful False Claims Act Case Against Urgent Care Provider NextCare Settles for $10 Million
In one of our first qui tam cases, we represented the Relator, a sales and marketing professional, who worked for a chain of urgent care clinics called NextCare. This False Claims Act case charged that defendants were selling medically unnecessary allergy, H1N1 virus, and respiratory panel testing - which at the time cost in excess of $1,000. The FDA had announced that these expensive tests were medically unnecessary for the majority of the population and should not be done. However, NextCare's founder pushed the staff at his clinics to perform as many of these tests as possible - in particular the allergy tests and H1N1 tests. The Department of Justice intervened in the case, and it was settled in a discounted "ability to pay" settlement of $10 million. Had this defendant had the means to pay what it should have paid, the amount owed would have exceeded $30 million. NextCare was also required to enter a 5-year Corporate Integrity Agreement, or CIA.