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Hospital purchasing whistleblower profiled in NY Times

Cynthia Fitzgerald, whose False Claims Act suit against Novation and other defendants was unsealed in September, is the subject of an article in the November 18, 2007 issue of the New York Times.

Ms. Fitzgerald, a former Novation employee, alleges that improper sales practices and erroneous accounting are draining millions of dollars out of Medicare through overcharges or unauthorized uses. The suit claims that Novation received kickbacks from suppliers it was negotiating with. The cost of these kickbacks was passed on to the hospitals in the form of higher prices. These higher prices were then passed on to the government when the hospitals sought reimbursement from Medicare and Medicaid.

Both federal and Texas state authorities are currently investigating Ms. Fitzgerald’s allegations, but have not yet decided to join her suit.

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