U.S. Department of Justice

Washington, D.C. 20530

FOR IMMEDIATE RELEASE

Monday, August 9, 1999

STATEMENT BY DEPARTMENT OF JUSTICE

SPECIAL COUNSEL FOR HEALTH CARE FRAUD JOHN BENTIVOGLIO

General Accounting Office report issued on DOJ Implementation

of False Claims Act Guidance in National Health Care Initiatives

"The Department of Justice concurs with many of the findings in the GAO report. The report documents the substantial progress we have made in providing strong oversight of our national enforcement projects. Each working group has developed a factual and legal review as required by the Deputy's June 3rd guidance, and is working closely with U.S. Attorneys' Offices. The GAO report also contains constructive recommendations with regard to our evaluation process, and we intend to implement these recommendations. In fact, we are taking additional steps -- above and beyond the GAO recommendations -- to enhance our oversight of national enforcement projects.

"With respect to the lab unbundling investigations, the GAO's findings about the pace of these investigations is not surprising. We have encouraged U.S. Attorneys' Offices to work cooperatively with hospitals in resolving these investigations, including providing hospitals with the option of conducting self audits. Many hospitals have chosen to conduct self audits. In addition, generally we have not relied on the use of traditional investigative methods -- including the issuance of civil investigative demands compelling the production of documents and testimony -- to establish evidence that false claims were submitted knowingly. We believe this more cooperative approach is the appropriate approach for resolving these investigations in a fair and even-handed manner."

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99-346