Result: $12.9 million settlement
U.S. v. The Door-A Center of Alternatives, et al., 19 Civ. 5195 (AKH) (S.D.N.Y.)
On February 3, 2022, the U.S. Attorney’s office has announced that the United States filed and settled a civil fraud lawsuit brought by Lieff Cabraser and co-counsel against New York City healthcare provider The Door. The complaint alleged that The Door violated the False Claims Act by fraudulently overreporting the number of visits to its healthcare facility. This overreporting resulted in The Door receiving excessive funding from the Indigent Care Pool, a program funded by both the federal government and New York State intended to reimburse certain healthcare providers for uncompensated care rendered to low-income New Yorkers.
“Through its misconduct, The Door received an excessive share of this funding at the expense of other healthcare providers that were similarly trying to provide services to low-income New Yorkers, and has now been held to account.”
— U.S. Attorney Damian Williams
Under the settlement, approved by U.S. District Judge Alvin K. Hellerstein of the Southern District of New York, The Door will pay $2,725,514.51 to the United States and has admitted and accepted responsibility for conduct alleged by the Government in the Complaint as further described below. The Door has also agreed to pay $10,222,297.89 to the State of New York to resolve the State’s claims, for a total recovery of $12,947,812.40.