It's harder out there.

Combating healthcare fraud, waste and abuse is a priority for enforcement and regulatory government agencies. It also continues to be the primary source of False Claims Act (FCA) investigations, settlements, and judgments in 2023. The government is using the FCA, its most effective tool in the fight against fraud, to hold individuals and corporations accountable, recover taxpayer funds, and deter future misconduct. The Barnes & Thornburg 2023 Healthcare Enforcement and Compliance Mid-Year Report offers an overview of the latest and most significant FCA developments, enforcement trends, civil and criminal actions, industry guidance, and government policy updates. It is our hope that this Mid-Year Report will help you recognize key enforcement trends and compliance risk areas to limit corporate and individual exposure. As we look back to the level of healthcare fraud enforcement activity in 2022, it should come as no surprise that the first half of 2023 has been busy. The FCA remains the government’s foremost tool in its toolbox to combat healthcare fraud, waste, and abuse.

DOWNLOAD THE 2023 HEALTHCARE ENFORCEMENT AND COMPLIANCE MID-YEAR Report

Key Findings From Our First Investment Funds Outlook Survey Report

Investors experiencing the “denominator effect” are increasingly particular about where they direct their money, as slow exits, declining valuations and liquidity restrictions have impacted limited partner (LP) cash flow. It’s no surprise, then, that 75% of respondents expect changes in fund terms that will benefit LPs.

At this time last year, federal FCA recoveries (healthcare and non-healthcare) totaled $1.46 billion across 198 matters. Of that, 140 were healthcare-related — totaling $1.26 billion.

For instance, 71% of general partners (GPs) expect to show more discipline toward long-term management of funds over the next year, while only 56% of LPs believe the same of GPs.

In comparison, at the end of June 2023, FCA recoveries (healthcare and non-healthcare) totaled $1.47 billion across 191 matters. A significant portion of the recoveries occurred in the healthcare sector, roughly $1.27 billion across 133 matters.

expect fund term changes benefitting LPs

75%

PERCENTAGE POINTS separate the expectations that LPs and GPs have for fund management

What Our Private Funds and Asset Management Attorneys Expect

Partner in Barnes & Thornburg’s Private Funds and Asset Management Group

Catherine Turgeon

Uncertainty in the markets and rising interest rates have made equity financings less attractive to investors, resulting in a drop in the PE activity of many private investment funds. This has also caused many portfolio companies to look to their existing PE investors for follow-on investments, to support the business until a new equity round can be raised on attractive terms

Co-chair of Barnes & Thornburg’s Private Funds and Asset Management Group

Jahan Sharifi

It’s a truism that when you have changing markets, you have more interesting investments. As our current economic uncertainty persists, the more sophisticated, thoughtful, and analytical funds have an opportunity to get out in front. Our hope is that the insights gathered in this report can help them do just that.

Partner in Barnes & Thornburg’s Private Funds and Asset Management Group

Kerry Potter McCormick

GPs, especially less experienced ones, will have to find innovative ways to attract LP dollars and address concerns about ESG and succession planning. At the same time, stakeholders on all sides of the deal table will need to make sure they’re getting the right risk-reward balance, while making preparations to adapt to inevitable shifts in the markets.

Co-chair of Barnes & Thornburg’s Private Funds and Asset Management Group

Scott Beal

Given continued economic uncertainty, we expect that the private funds sector will be rife with new tensions, dynamics, challenges, and opportunities.

A Closer Look at What Private Fund Managers, GPs and LPs are Thinking

Barnes & Thornburg’s 2023 Healthcare Enforcement and Compliance Mid-Year Report

The New GP-LP Dynamic: Changing Fund Terms, Emerging Challenges, and Misalignment Abound Succession Planning Takes Center Stage ESG is a Key Priority — at Least for LPs

Life Sciences Funding Comes Down to Earth — But Outlook Remains Positive

Real Estate Private Equity: Proceeding with Caution

Digital Assets: Will Crypto Spring Back?

Life Sciences Funding Comes Down to Earth — But Outlook Remains Positive

Real Estate Private Equity: Proceeding with Caution

Digital Assets: Will Crypto Spring Back?

Private Investment Funds and Asset Management Outlook The 2023 Barnes & Thornburg Report

Ready for an even deeper dive?

Get the full Barnes & Thornburg Private Funds Outlook Survey

On an earnings call late last year, Blackstone president Jonathan Gray offered a succinct summary of the institutional fundraising climate:

The statistics continue to demonstrate that the healthcare industry is, and will continue to be, a primary enforcement area for the government.

DOWNLOAD THE 2023 HEALTHCARE ENFORCEMENT AND COMPLIANCE MID-YEAR Report

FCA Recoveries in First Half 2022

FCA Recoveries in First Half 2023

Partner, Healthcare Department and Healthcare Industry Practice Chair,

Scott Beal

Partner, Healthcare Department and Healthcare Industry Practice Chair

Scott Beal

Partner

Scott Beal

Partner

Scott Beal

Partner

Scott Beal

Partner

Scott Beal

Partner

Scott Beal

Authors:

Stacy Cook Partner Heather Delgado, Partner Elisa Harris, Partner Joy Longnecker, Partner Jason Schultz, Partner Laura Seng, Partner J.D. Thomas, Partner Jason Wallace, Partner Kian Hudson, Of Counsel Joel Benson, Associate Harte Brick, Associate Meagan Dimond, Associate Mackenzie Hobbs, Associate Megha Mathur, Associate Iqra Mushtaq, Associate Erin Steele, Associate

Anne Compton-Brown, Partner Stacy Cook, Partner Heather Delgado, Partner Elisa Harris, Partner Joy Longnecker, Partner Jason Schultz, Partner Laura Seng, Partner J.D. Thomas, Partner Jason Wallace, Partner Kian Hudson, Of Counsel Joel Benson, Associate Harte Brick, Associate Meagan Dimond, Associate Mackenzie Hobbs, Associate Megha Mathur, Associate Iqra Mushtaq, Associate Erin Steele, Associate

Contributers:

John Kelly

Partner, Healthcare Department and Healthcare Industry Practice Chair

Jackie Papish

Partner

tony burba

Partner

A.J. Bolan

Associate

Tom Petersen

Associate

DOWNLOAD THE 2023 HEALTHCARE ENFORCEMENT AND COMPLIANCE MID-YEAR Report

$1.46B total recoveries $1.26B healthcare-only

$1.47B total recoveries $1.27B healthcare-only