(Bloomberg) -- The U.S. Supreme Court on Thursday limitedthe reach of a whistle-blower law designed to ferret out fraud, ina mixed ruling for health-care companies and othergovernment contractors.
The justices unanimously told a lower court to revisit a rulingthat let Universal Health Services Inc. be sued under the U.S.False Claims Act for allegedly using unlicensed and unsupervisedstaff at a counseling center in Massachusetts. The suit is beingpressed by the parents of a girl who died of a seizure after beingtreated at the facility.
The lawsuit says Universal Health failed to comply with stateregulations, making its request for reimbursement under thefederal-state Medicaid program fraudulent.
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