WASHINGTON — Federal enforcers are targeting individual executives in health care fraud cases that used to be aimed at impersonal corporations.
The still evolving new tactic is raising the anxiety level — and risks — for corporate honchos at drug companies, medical device manufacturers, nursing home chains and other health enterprises that deal with Medicare and Medicaid.
Previously, if a company got caught, its lawyers in many cases would be able to negotiate a financial settlement.
Lawyers who represent drug companies say the change has caused a stir, but the end result is far from certain.
“People are alarmed,” said Brien O’Connor, a partner in the Boston office of Ropes & Gray. “They want to know what facts and circumstances would cause the Justice Department to indict someone who hadn’t even known about the misconduct.”
