Damages & Penalties

When fraud occurs in the healthcare system, the financial consequences can be staggering. That’s why damages and penalties under the False Claims Act (FCA) and related laws are structured to deter misconduct while rewarding accountability. At Barrett Johnston, we’ve helped clients understand how these numbers add up — and why they matter.

Under the FCA, violators may face treble damages, meaning they must pay three times the amount the government lost due to fraud. On top of that, they may owe civil penalties for each false claim submitted, which can total thousands of dollars per violation and can sometimes exceed the actual damages.

These penalties serve two key purposes:

1. Restitution – repaying taxpayer dollars lost to fraud.
2. Deterrence – making it clear that fraud will cost far more than it gains.

Whistleblowers (known as relators) who bring successful qui tam cases can receive 15–30% of the government’s recovery, reinforcing the system’s emphasis on justice through partnership.

In healthcare, damages and penalties often run into the hundreds of millions — even billions — when major corporations are involved. Each high-profile case not only compensates taxpayers but also reminds the industry that ethical conduct isn’t optional.