Dakshesh Parikh v. Citizens Medical Center
587 F. App'x 123
5th Cir.2014Background
- Relators are cardiologists who sued Citizens Medical Center, Brown, and Campbell under the FCA for alleged kickback-based referrals.
- CMC is a county-owned hospital in Victoria, Texas; Brown is the administrator, Campbell a hospital-employed cardiologist.
- Relators allege three schemes: bonuses for ER physicians for referrals to the chest pain center; above-market salary and discounted rent for Campbell in exchange for referrals; bonuses to gastroenterologists tied to referral volume via screenings.
- Relators assert the schemes violated AKS and the Stark Law, and that the defendants knowingly submitted claims for payment in violation of those statutes.
- District court denied qualified immunity to Brown and Campbell; the Fifth CircuitAffirmed the denial on qualified immunity grounds, addressing the FCA claim on the merits.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Relators plead a valid FCA claim. | Parikh et al. allege knowingly false certification. | No material issue; immunity may apply. | Relators plead a valid FCA claim. |
| Whether Brown and Campbell are entitled to qualified immunity. | Relators show knowledge of falsity and certification. | Careful analysis required; government officials deserve immunity unless clearly established. | Not entitled to qualified immunity; FCA claim survive. |
Key Cases Cited
- United States ex rel. Thompson v. Columbia/HCA Healthcare Corp., 125 F.3d 899 (5th Cir. 1997) (false certification theory under FCA for payments conditioned on certification of compliance with laws)
- United States ex rel. Spicer v. Westbrook, 751 F.3d 354 (5th Cir. 2014) (cited for FCA standards and knowledge)
- Ashcroft v. al–Kidd, 131 S. Ct. 2074 (2011) (clearly established standard for qualified immunity)
- Atteberry v. Nocona General Hosp., 430 F.3d 245 (5th Cir. 2005) (two-step qualified immunity framework)
- Pearson v. Callahan, 555 U.S. 223 (2009) (discretion on which prong of qualified immunity to address)
- Longhi v. Lithium Power Techs., Inc., 575 F.3d 458 (5th Cir. 2009) (FCA liability tied to government payment conditioned on certification)
- United States v. Rogan, — (—) (cited for Stark Law principles (N.D. Ill. 2006))