It's harder out there.
Combating healthcare fraud, waste and abuse is a priority for enforcement and regulatory government agencies. It is safe to say that 2023 was nothing short of eventful when it came to civil and criminal healthcare fraud enforcement. It is no surprise that the government continues to use the False Claims Act (FCA), its most effective tool in the fight against civil fraud, to hold individuals and corporations accountable, recover taxpayer funds and deter future misconduct.
The Barnes & Thornburg 2023 Annual Healthcare Enforcement and Compliance 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 Annual Report will help you recognize key enforcement trends and compliance risk areas to limit corporate and individual exposure.
DOWNLOAD THE 2023 ANNUAL HEALTHCARE ENFORCEMENT
AND COMPLIANCE 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 $2.2 billion across 963 matters. Of that, nearly 80% were healthcare-related — totaling $1.79 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 2023, FCA recoveries (healthcare and non-healthcare) totaled $2.68 billion across 1,212 matters. A significant portion of the recoveries occurred in the healthcare sector, roughly $1.8 billion across 442 matters.
expect fund term changes benefitting LPs
75%
PERCENTAGE POINTS
separate the expectations that LPs and GPs have for fund management
15
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 Annual Healthcare Enforcement and Compliance 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 ANNUAL HEALTHCARE ENFORCEMENT
AND COMPLIANCE Report
FCA Recoveries in
FY 2022
FCA Recoveries in
FY 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
Lead 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
Eric Beste, Partner
Tony Burba, Partner
Anne Compton-Brown, Partner
Stacy Cook, Partner
Heather Delgado, Partner
David Frazee, Partner
Elisa Harris, Partner
Kian Hudson, Partner
Thomas Hutchinson, Partner
Joy Longnecker, Partner
Charles Schultz, Partner
Jason Schultz, Partner
Laura Seng, Partner
J.D. Thomas, Partner
Jason Wallace, Partner
Erica Woebse, Partner
Amy Kluesner, Of Counsel
Joel Benson, Associate
Harte Brick, Associate
Meagan Dimond, Associate
Lizzie Ford, Associate
Mackenzie Hobbs, Associate
Gunnar Jurgensen, Associate
Megha Mathur, Associate
Iqra Mushtaq, Associate
Royston Peters, Associate
Samantha Pugh, Associate
Jane Sitorius, Associate
Erin Steele, Associate
Denise Vaughn, Associate
Kelsey Vincent, Associate
Mariah Whitner, Associate
Contributors:
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
$2.2B total recoveries
$1.79B healthcare-only
$2.68B total recoveries
$1.8B healthcare-only
John Kelly
Partner, Healthcare Department and
Healthcare Industry Practice Chair
Jackie Papish
Partner
Tom Petersen
Associate