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CASE 142 Universal Health Services,Inc

Question 45

Multiple Choice

CASE 14.2 Universal Health Services,Inc.v.United States ex rel.Escobar (2016) ,involved a qui tam suit against Universal Health asserting that they submitted claims for reimbursement for services but failed to disclose serious regulation violations.Which of the following statements about this action is true?


A) The Court rejected the government's assertion that any statutory,regulatory,or contractual violation is material as long as the defendant knows that the government would be entitled to refuse payment were it aware of the violation.
B) A defendant should face FCA liability only if it failed to disclose the violation of a contractual,statutory,or regulatory provision that the government expressly designated a condition of payment.
C) The Court held that the implied certification theory cannot be a basis for liability.
D) The Court applied the test as to whether the undisclosed violation is material,and found that it was not relevant to but rather dispositive of the materiality inquiry.

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