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Following the Money in Health Care Fraud: Reflections on a Modern-Day Yellow Brick Road


Joan H. Krause


University of North Carolina (UNC) at Chapel Hill - School of Law


American Journal of Law and Medicine, Vol. 36, Nos. 2 & 3, p. 343, 2010
UNC Legal Studies Research Paper No. 1649474

Abstract:     
Health care fraud is all about the money. The United States spent an estimated $2.5 trillion on health care in 2009, with over $918 billion of that coming from the federal government. Under some estimates, up to 10 percent of that amount - no one quite knows for sure - might be lost to fraud. But the relationship between health care fraud and the U.S. health care system is far more complex than might first appear. Would-be “fraudsters” are not the only ones who respond to the financial incentives in the system. Due to the unique nature of the laws used to pursue health care fraud, both public and private prosecutors also follow the money in choosing their targets and both may share in the spoils of a successful prosecution. Perceptions about the money lost to health care fraud also have enormous influence on policymakers, as exemplified by the recent health care reform debate. In short, money may drive health care fraud, but not all roads lead in the same direction. This essay explores three different perspectives on the ways in which health care fraud “follows the money” - the would-be perpetrators of fraudulent schemes, the public and private prosecutors who pursue fraudulent activities, and the policymakers who work to prevent fraud and recapture lost funds for legitimate program purposes.

Number of Pages in PDF File: 27

Keywords: Health Care, Health Care Fraud, Crime, White Collar Crime

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Date posted: July 28, 2010  

Suggested Citation

Krause, Joan H., Following the Money in Health Care Fraud: Reflections on a Modern-Day Yellow Brick Road. American Journal of Law and Medicine, Vol. 36, Nos. 2 & 3, p. 343, 2010; UNC Legal Studies Research Paper No. 1649474. Available at SSRN: http://ssrn.com/abstract=1649474

Contact Information

Joan H. Krause (Contact Author)
University of North Carolina (UNC) at Chapel Hill - School of Law ( email )
Van Hecke-Wettach Hall, 160 Ridge Road
CB #3380
Chapel Hill, NC 27599-3380
United States
919-962-4126 (Phone)
919-962-1277 (Fax)

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