January 22, 2010
The Dept. of Justice announced that it has settled a False Claims Act suit against a dental management company.
The company, FORBA Holdings LLC, agreed to pay $24 million to resolve allegations that it provided medically unnecessary dental services to children insured by Medicaid. These services included pulpotomies (baby root canals), placing crowns, administering anesthesia, performing extractions, and providing fillings and/or sealants. The company provides management and administrative services to 69 clinics nationwide.
The government’s investigation was initiated by three whistleblower suits filed under the qui tam provisions of the False Claims Act. The whistleblowers will receive a relator’s share of over $2.4 million.