Protecting What's Right

Parker, Arizona physician Kevin S. Klopfenstein, M.D., has consented to pay the federal government a considerable sum to settle an inquiry concerning False Claims Act violations in the submission of bills to Medicare.  The government had alleged that Dr. Klopfenstein and his medical practice, KSK, made false claims to Medicare for Thoracic Electrical Bioimpedance (TEB) (also called Biothoracic Impedance (BTI)) testing.  According to the government, the doctor falsely claimed that the patients who had received the tests satisfied governing Medicare coverage requirements when this was not the case.

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At the end of March, a jury returned a split verdict against Tuomey Healthcare System, of Sumter, South Carolina in a federal False Claims Act suit by the Justice Department.  The jury’s verdict—that the hospital violated the Stark Law but not the False Claims Act—has left both sides asking the judge for relief this week.

The lawsuit alleged that the hospital acted to inflate its profits in violation of the False Claims Act and that the defendants violated the Stark Law.  The Stark Law prohibits doctors from referring patients to medical facilities in which they have any interest.  The government has alleged that the facility created a near-monopoly by stifling competition among local doctors, forming employment contracts with doctors who then referred patients to the facility, and then obtaining illegal higher payments for certain medical procedures.

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The U.S. Department of Health and Human Services recently reported to Congress that “very little progress” has been made in lowering the incidence of hospital infections, and that some life-threatening infections are on the rise.

Of the five major types of hospital-related infections, rates for three have increased, while one has decreased and another has shown no change.

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The U.S. Labor Department has begun a campaign to encourage workers to report employers who violate wage and hour rules.  The “We Can Help” campaign includes ads in English and Spanish and features public figures such as farm worker labor leader Dolores Huerta and actor Jimmy Smits.

The agency is focusing its outreach on low-income workers in such fields as construction and food service.  The campaign is also attempting to reassure undocumented workers that they have rights to collect back wages owed to them.

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Chinese drywall, imported to deal with shortages of U.S. drywall between 2004 and 2006, has caused tremendous problems in the homes were it was used.  Fumes released by the drywall can corrode metal—damaging electrical wiring, plumbing and appliances.  One hundred thousand or more homes across the U.S. contain Chinese drywall, and some families don’t even know it yet because it can take some time for the problems to appear.

All Chinese drywall claims filed in federal court have been consolidated in one district court in New Orleans.  U.S. District Judge Eldon Fallon presides over the cases, and Baron & Budd attorney Bruce Steckler serves on the Plaintiffs’ Steering Committee, which speaks on behalf of all homeowners involved in the litigation.

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Pharmaceutical giant Pfizer, the largest drug company in the world, has disclosed that it paid approximately $20 million in consulting and speaking fees to 4,500 doctors and medical professionals during the last half of 2009.  Pfizer also paid $15.3 million during the same period to 250 medical centers and research groups conducting clinical trials.

Most of the disclosures were made to comply with an integrity agreement entered by the company to settle a federal investigation concerning the alleged illegal promotion of drugs for off-label uses.

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Louisiana State Senator Julie Quinn has been a champion for homeowners dealing with toxic Chinese drywall, and the Louisiana Senate has passed a bill she sponsored that would provide certain insurance protections for homeowners dealing with Chinese drywall.   S.B. 565 would prohibit insurance companies from canceling or failing to renew a homeowner’s policy based on the homeowner having made a claim involving Chinese drywall.

Last week, the Louisiana Senate Insurance Committee unanimously approved the bill and sent it to the floor of the senate.  Baron & Budd attorney Burton LeBlanc testified before the committee, along with Baron & Budd client Shannon Schulz.  See related story.  On Monday, the Louisiana Senate unanimously approved the bill as well.

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The U.S. Food and Drug Administration is considering whether to stop a safety study comparing Avandia to another diabetes medication.  If the study is stopped, it is possible that the FDA will remove the drug from the market.  It has been estimated that more than 200,000 people in the U.S. alone suffer serious, sometimes even fatal, side effects caused by prescription drugs.  See information on unsafe drugs and medical devices.

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After finding a third leak below the site of the Deepwater Horizon, the Coast Guard has now reported that the BP oil spill could be growing at five times the rate that was previously believed—and about 210,000 gallons of oil a day are entering the waters of the Gulf of Mexico.

Coast Guard crews are preparing to use a controlled burn of the oil floating on the ocean waves.  This plan represents a last ditch effort to deal with some of the oil creeping toward shore and threaten delicate ecosystems.  Burning has been tried experimentally, but the oil spill in the Gulf is much larger and more difficult to contain than any experimental burns.

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