A new investigation reveals that companies who have previously paid out millions for False Claims Act (“FCA”) violations are now reaping the rewards of COVID-19 relief funds.  The investigation identified 225 companies that have received money through the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act despite having paid nearly $13 billion in settlements and penalties related to FCA violations since 2010.  The investigation uncovered that in 2020 alone eleven companies that received federal stimulus money had previously paid out $150 million in FCA payments.

One such example is Dallas-based Tenet Healthcare.  In February 2020, the U.S. Department of Justice (“DOJ”) announced that Tenet and an affiliated hospital would pay $1.4 million to resolve allegations they charged Medicare for unnecessarily implanted cardiac monitors.  Less than three months later, Tenet reported in its SEC filings that it received $1.5 billion in CARES Act advance Medicare payments.  This past month, Tenet reported receiving another $712 million in cash payments.

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