Federal judge denies motion to dismiss Caris False Claims Act lawsuit

JOHNSON CITY, TN (WJHL) – A federal judge declined to dismiss a False Claims Act lawsuit against Caris Healthcare this week, according to court records.

Prosecutors argue Caris used some of its patients to take millions of dollars from the government, in some cases allowing patients to remain in hospice care for multiple years, even though they were not really eligible for hospice and were not terminally ill.

The federal government is pursuing the case on behalf of a former employee.

Currently, a trial date is scheduled for July 2018, but prosecutors are asking a judge to bump that back by another year.

Earlier this week, Chief U.S. District Court Judge Thomas Varlan denied Caris’ motion to dismiss the case, saying in court records prosecutors have found enough evidence to reasonably suggest, at the least, Caris “recklessly disregarded the ‘truth or falsity’ of the information contained in their claims for reimbursement.”

Caris has maintained it is confident in its processes and in the clinical judgment of its employees.

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