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UNITED STATES OF AMERICA ex rel. KATHLEEN A BRYANT,
Relator-Appellant,
v.
COMMUNITY HEALTH SYSTEMS, INC.; HERITAGE MEDICAL
CENTER,
Defendants-Appellees.
UNITED STATES OF AMERICA ex rel. JAMES DOGHRAMJI, SHEREE
COOK, and RACHEL BRYANT,
Relators-Appellants,
v.
COMMUNITY HEALTH SYSTEMS, INC. et al.,
Defendants-Appellees.
UNITED STATES OF AMERICA ex rel. NANCY REUILLE,
Relator-Appellant,
v.
COMMUNITY HEALTH SYSTEMS PROFESSIONAL SERVICES
CORPORATION et al.,
Defendants-Appellees.
UNITED STATES OF AMERICA ex rel. AMY COOK-RESKA,
Relator-Appellant,
v.
COMMUNITY HEALTH SYSTEMS, INC. et al.,
Defendants-Appellees |
No. 20-5460
Nos. 20-5462/5469
No. 20-5463
No. 20-5637 |
Appeal from the United States District Court for the Middle District of Tennessee at Nashville.
Nos. 3:11-cv-00442; 3:14-cv-02195 (20-5460), 3:15-cv-00110 (20-5462/5463/5469),
and 3:14-cv-02160 (20-5637)—Marvin E. Aspen, District Judge.
Argued: December 9, 2021
Decided and Filed: January 25, 2022
Before: MOORE, CLAY, and GIBBONS, Circuit Judges.
_________________________
OPINION
_________________________
KAREN NELSON MOORE, Circuit Judge. Various relators in these consolidated cases
sued Community Health Systems (“CHS”) and others, alleging that CHS submitted fraudulent
claims for medically unnecessary hospital admissions to federal public-health insurance
programs, such as Medicaid and Medicare. Relators’ counsel performed thousands of hours
work in assisting the government with the investigation. Seven years ago, the relators, the
government, and CHS entered into a settlement agreement, disposing of the underlying claims in
the cases. The settlement agreement left undecided the allocation of attorney fees under the
relevant provision of the False Claims Act (“FCA”), 31 U.S.C. § 3730(d). After settling with all
Nos. 20-5460/5462/5463/5469/5637 United States ex rel., Bryant et al. Page 3
the relators, CHS now claims that the relators are not entitled to attorney fees because the FCA’s
first-to-file rule and public-disclosure bar precluded their claims. The district court agreed with
CHS.
We hold that CHS cannot now rely on these separate provisions of the FCA as a last-ditch effort to deny attorney fees to the relators. After the global settlement reached pursuant to
a collaborative process between the government and relators’ counsel, we see no reason to apply
the first-to-file and public-disclosure rules. We REVERSE the district court’s judgment and
REMAND with instructions to the district court to determine an award of reasonable attorney
fees to relators’ counsel. |
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