Citing the growing influence of private equity firms and other investors on the delivery of health care, the Department of Justice (”DOJ”) has turned its sights on healthcare investors, including through the widely used healthcare anti-fraud tool, the federal False Claims Act (”FCA”).
In a February 2024 speech at the Federal Bar Association’s Qui Tam Conference, the acting head of DOJ’s Civil Division Brian M. Boynton identified “investors, such as private equity firms or venture capital firms” as a source of “influence [on] patient care” and warned that DOJ “will not hesitate to pursue them for their roles in defrauding the government.” [Hereinafter, Boynton Speech].
Scrutiny from other arms of DOJ, including the Antitrust Division, is ratcheting up in parallel, and health care investors should understand the heightened compliance program expectations they are facing.
