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SCOTUS: Revisit ruling letting Universal Health Services be sued

The Supreme Court unanimously told a lower court to revisit a ruling that let Universal Health Services be sued for allegedly using unlicensed and unsupervised staff at a counseling center in Massachusetts. The lawsuit says Universal Health failed to comply with state regulations, making its request for reimbursement under the...

By Greg Stohr | Updated on June 16, 2016
The Supreme Court told a lower court to revisit a ruling that let Universal Health Services be sued for allegedly using unlicensed and unsupervised staff. (Photo: AP)

(Bloomberg) — The U.S. Supreme Court on Thursday limited the reach of a whistle-blower law designed to ferret out fraud, in a mixed ruling for health-care companies and other government contractors.

The justices unanimously told a lower court to revisit a ruling that let Universal Health Services Inc. be sued under the U.S. False Claims Act for allegedly using unlicensed and unsupervised staff at a counseling center in Massachusetts. The suit is being pressed by the parents of a girl who died of a seizure after being treated at the facility.

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