whistleblower

The Food and Drug Administration has failed in its responsibility to maintain oversight over companies that manufacture disposable wipes.As a result, sanitation and hygiene standards at these facilities have dropped, and the result has been several fatalities and infections across the country caused by contaminated wipes.An investigation by the Milwaukee-Wisconsin Journal Sentinel found poor hygiene standards at a facility operated by yet another Wisconsin-based company that manufactures wipes.

Product liability claims are likely from any serious infection or wrongful death which arises due these wipes. A personal injury arising out of a serious infection often results in long-term hospitalization and continuing issues for the individual. Product liability claims which arise out of the improper manufacturing of a product can be very difficult to prove. However, personal injury lawyers have developed a variety of techniques of attacking these types of cases. The work of government agencies is often an important component in establishing civil liability in these matters.

That company, Rockline Industries manufactures baby wipes and other wipes that are used in hospitals and homes.According to the investigation, at least 5 years ago, employees of the company acting as whistleblowers wrote a letter to the Food and Drug Administration warning that thousands of contaminated wipes were being manufactured at the company’s Arkansas facility.The whistleblowers alleged that the company was aware of the contamination of these wipes, but failed to take action, and continued to ship these wipes across the country.

Last week the Atlanta Journal Constitution reported the case of Teri Ramsey, a former St. Joseph’s Hospital nurse turned whistleblower whose False Claims Act lawsuit against St. Joseph’s cost the hospital $26 million with a net reward to her of $4.9 million.This is the highest paid health care fraud in Georgia history.

Ramsey, a nurse by profession, was hired to review hospital admissions.Within weeks of beginning her job, Ramsey noticed that many outpatient services were billed as inpatient services.The billing distinction allowed for St. Joseph’s to collect significantly more from Medicare.Ramsey complained to supervisors and doctors, but claims she was quickly rebuffed and even told not to “rock the boat.”Ramsey’s persistence caused her to be ostracized by co-workers and intimidated by supervisors.The hospital culture created a disincentive to whistle blowing.

Ramsey persisted, nevertheless.She contacted an attorney and filed a complaint under the federal False Claims Act. This Act, also known as a qui tam proceeding, allows private citizens to sue on behalf of the United States for fraudulent claims on United States funds.The False Claims Act has considerable teeth. Defendants found liable under the Act must pay treble (three times) damages of the actual over billing.Also, the Act provides for civil penalties of $5000 per each fraudulent claim.Finally, in order to encourage private citizens to turn in defrauders, the private citizen is entitled to collect 15 to 25 percent of the recovery.Often, federal prosecutors step into the suit and pursue it on behalf of the government.

Articles Tagged with whistleblower

FDA’s Poor Oversight of Disposable Wipes Makers Poses Safety Risk to Consumers

False Claims Act Nets Whistleblower $4.9 Million