Data miner whistleblowers, increasingly armed with artificial intelligence (AI) tools, are already reshaping how False Claims Act (FCA) theories are built, generated, and litigated. The Department of Justice’s (DOJ) April 2026 announcement of the Fraud Oversight through Careful Use of Statistics (FOCUS) initiative, which will strengthen relationships with data miner relators who have developed
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California’s Corporate Practice Crackdown: What Carbon Health, Aspen Dental, and SB 351 Mean for Healthcare Investors and Operators
By Jordan Cohen & John Hood
California has long maintained one of the country’s most stringent prohibitions against the corporate practice of licensed professions, including medicine and dentistry. Under that doctrine, only licensed professionals may own and operate their practices. So, to participate in the practice, non-professional investors have historically utilized the so-called “friendly PC” model in which a management services…
Paper Compliance Versus Economic Reality: Physician Contracting Lessons for Hospitals and Health Systems from a Recent False Claims Act Case
By John Hood
A recent False Claims Act (FCA) ruling out of Tennessee offers a pointed reminder for hospitals and health systems: physician contracts that appear compliant on paper can still create serious enforcement risk if the economics tell a different story. In denying motions to dismiss FCA claims involving Erlanger Health System (Erlanger), the federal court allowed…
New Year, New AI Rules: Healthcare AI Laws Now in Effect
As healthcare organizations ring in 2026, they will also be ringing in a new era of AI regulation. With Congress yet to pass comprehensive AI legislation and federal regulatory guidance in flux, states have stepped in to fill the void. The new year will see several new laws imposing disclosure, transparency, and data protection requirements…
NYDFS Highlights Strategies to Combat AI Cybersecurity Risks
The increased use of artificial intelligence (AI) in the banking, insurance, and financial services industries has led the New York State Department of Financial Services (NYDFS or Department) to publish an Industry Letter on October 16, 2024, that highlights cybersecurity risks resulting from the use of AI, the dangers posed by threat actors utilizing AI,…