Court declares qui tam whistleblower provisions unconstitutional in Florida practice’s fraud case

A federal judge in Florida has dismissed a whistleblower lawsuit accusing a medical practice of inflating Medicare reimbursements, citing constitutional concerns over the False Claims Act’s qui tam provisions, law.com reported Oct. 4. 

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The lawsuit, initially filed by former physician Clarissa Zafirov, MD, accused her former employer, Ocala-based Florida Medical Associates, of submitting fraudulent claims by encouraging unnecessary medical visits. 

The suit did not receive backing from the government, prompting Dr. Zafirov to pursue the case independently, according to a news release from the law firm Foley & Lardner, which represented the practice.

Foley & Lardner filed a motion in response arguing that the FCA’s whistleblower, or qui tam, provisions are unconstitutional. The law firm contended that these provisions empower private citizens, known as relators, to act as officers of the United States without being formally appointed, thereby violating U.S. Constitution.

On Sept. 30, U.S. District Judge Kathryn Kimball Mizelle of the Middle District of Florida ruled that the FCA’s qui tam provisions violate Article II.

This ruling marks the first time a federal court has found the qui tam provisions of the False Claims Act unconstitutional.

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