A federal appeals court has overturned an $82.6 million judgment against three companies that had been sued by the U.S. government for Medicare fraud.
The U.S. 6th Circuit Court of Appeals on Friday ruled that the companies did not act with "reckless disregard of legal mandates" when it came to their submissions to the Medicare program and cannot be held liable for filing false claims under federal whistleblower laws.
The court also dismissed the main civil charges brought by the government against Renal Care Group, Renal Care Group Supply Co. and Fresenius Medical Care Holdings Inc. The three-judge panel sent five other allegations back to U.S. District Judge William J. Haynes Jr. in Nashville for hearings.
Haynes ruled in 2011 that the companies improperly billed Medicare over a six-year period.