Recovering Fraudulent Claims for Australian Federal Expenditure on Pharmaceuticals and Medical Devices
Journal of Law & Medicine, Vol. 18, No. 2, pp. 302-315, 2010
14 Pages Posted: 19 Dec 2010
Date Written: December 18, 2010
The Australian Federal Government expends increasingly large amounts of money on pharmaceuticals and medical devices. It is likely, given government experience in other jurisdictions, that a significant proportion of this expenditure is paid as a result of fraudulent claims presented by corporations. In the United States, legislation such as the False Claims Act 1986 (US), the Fraud Enforcement and Recovery Act 2009 (US), the Stark (Physician Self-Referral) Statute 1995 (US), the Anti-Kickback Statute 1972 (US), the Food, Drug and Cosmetic Act 1938 (US), the Social Security Act 1965 (US), and the Patient Protection and Affordable Care Act 2010 (US) has created systematic processes allowing the United States Federal Government to recover billions of dollars in fraudulently made claims in the health and procurement areas. The crucial component involves the creation of ﬁnancial incentives for information about fraud to be revealed from within the corporate sector to the appropriate state officials. This article explores the opportunities for creating a similar system in Australia in the health care setting.
Keywords: Fraud, ANti-Trust, Qui Tam, False Claims, Pharmaceutical Industry, Health Care Industry, Kick Backs
JEL Classification: E61, H51
Suggested Citation: Suggested Citation