HCA Healthcare Fraud Settlement (2000)

Few cases better illustrate the scale of healthcare fraud than the qui tam action against HCA Healthcare. That case ultimately settled in 2000 and marked a major achievement in federal FCA enforcement.

The case stemmed from widespread allegations that HCA, one of the largest hospital chains in the U.S., engaged in fraudulent billing practices. The company was accused of overcharging federal healthcare programs, billing for unnecessary lab tests, and paying kickbacks to physicians for patient referrals.

After years of investigation, HCA agreed to pay more than $1.7 billion in criminal fines and civil penalties—the largest healthcare fraud settlement in U.S. history at that time. Multiple whistleblowers played key roles in uncovering the misconduct, bringing qui tam actions under the False Claims Act.

The HCA case was transformative. It set new expectations for corporate accountability in healthcare and showed that even industry leaders are not immune from scrutiny. It also demonstrated that nine- and ten-figure settlements were not just possible in the pharmaceutical industry, which is where most of the biggest FCA settlements and judgments had come from prior to that point.

The HCA case was a turning point that demonstrated the power of truth-tellers and the long-term value of the False Claims Act.