“Worthless Services” Theory in False Claims Act Cases Dealt Another Blow
On April 15, the Eastern District of Pennsylvania issued a defense-favorable order, granting summary judgment in U.S. ex rel. Jackson v. DePaul Health System, a False Claims Act case brought on a “worthless services” theory: alleging that claims submitted to the government were false because the care provided and billed for was so deficient as to be worthless.
The relator in Jackson was a Certified Nursing Assistant working for the defendants. Although they were not involved in billing, staffing, or supplies procurement, they alleged that the facility was understaffed, provided substandard care to its residents, and must have submitted fraudulent compliance forms to the federal government. The court found that, although it was possible for these services to be of such poor quality that they were “tantamount to no service at all”, the relator had not alleged that level of profound negligence.
