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Texas Supreme Court Rules Xerox Subsidiary Must Defend Fraud Claims Alone

Posted by Audrey Schechter | Sep 12, 2018 | 0 Comments

Recently, the Texas Supreme Court ruled that Conduent, a Xerox subsidiary, must defend the State's False Claims Act case on its own.  Conduent sought to add providers to the State's action, accusing Conduent of widespread Medicaid fraud stemming from its "porous" Medicaid pre-authorization process for dental and orthodontic claims.  The complaint alleges that unqualified clerks pre-approved 90% of the the pre-authorization applications, most of which were for procedures that were cosmetic, and not medically necessary.  Indeed, clerks were reprimanded if their pre-authorization numbers were not high enough to satisfy the management.

The State of Texas seeks $2 Billion in damages and penalties.  The federal government has claimed the State owes it $133 Million as a result of the U.S. Government's payment of the fraudulent claims.  Texas has begun paying that money back to the U.S. Government.

If the pre-authorization entity in Florida engages in similar practices authorizing non-medically necessary dental procedures, it would be ripe for a government investigation.

Please click on the below link to read more about the Texas Supreme Court's opinion.

About the Author

Audrey Schechter

Audrey Hildes Schechter is an experienced commercial and civil litigator, working in the areas of fraud, qui tam, healthcare fraud, Medicare and Medicaid fraud, Tricare fraud, appellate practice, health care law, and employment litigation. Audrey has practiced in Florida for 25 years and in New Y...


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