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Around the nation: Healthcare fraud settlements hit $5.7B in 2025


According to the Department of Justice (DOJ), healthcare fraud settlements under the False Claims Act (FCA) reached $5.7 billion in fiscal year 2025, the highest amount ever recorded, in today's bite-sized hospital and health industry news from the District of Columbia, Maryland, New York, and Rhode Island. 

  • District of Columbia: According to DOJ, healthcare fraud settlements under the FCA reached $5.7 billion in fiscal year 2025. This is the highest amount ever recorded and more than triple the $1.7 billion in settlements reported in 2024. Across all industries, FCA settlements totaled $6.8 billion in 2025. Healthcare settlements typically involve federal programs like Medicare, Medicaid, and Tricare. DOJ also said that it expanded its enforcement to include cases involving managed care, prescription drugs, and medically unnecessary care. According to Rachael Jones, principal at law firm McKool Smith and former deputy chief of the criminal division in the U.S. attorney general's office in the northern district of Texas, whistleblowers may be helping drive the increase in fraud settlements since they can receive a portion of FCA settlements. In 2025, there were 1,297 whistleblower cases filed, and whistleblower cases received over $262 million in successful healthcare fraud lawsuit settlements. (Halleman, Healthcare Dive, 1/21)
  • Maryland/Rhode Island: CVS Health and the University of Maryland School of Pharmacy have partnered to launch a multiyear collaboration to strengthen pharmacy workforce development and advance innovation in community practice. Through the partnership, CVS will help the school assess how AI can help streamline pharmacy workflows and create more effective clinical interventions. The initiative will also expand the school's Experiential Learning Program by allowing students to train in different areas of CVS' operations, including retail, managed care, corporate, and call center environments. According to leaders from both organizations, the partnership aims to elevate the role of pharmacists, inspire future talent, and create new pathways to transform community pharmacy. (Jeffries, Becker's Hospital Review, 1/21)
  • New York: Pfizer is exiting its minority stake in Viiv Healthcare, an HIV medication company it formed in partnership with GSK in 2009. Under a new agreement, Pfizer's ownership in the company will be replaced by Shionogi, another minority shareholder. In exchange for canceling its 11.7% stake in the company, Pfizer will receive $1.875 billion. Viiv will also issue new shares to Shionogi for $2.125 billion, increasing the company's stake from 10% to 21.7%. GSK will remain Viiv's majority shareholder with a 78.3% stake in the company and receive a special dividend of $250 million. "This agreement simplifies ViiV's shareholder structure and we look forward to continuing our highly successful collaboration with Shionogi to advance ViiV's pipeline and portfolio of long-acting injectable HIV treatment and prevention medicines," said David Redfern, chair of Viiv. Currently, ViiV has 15 approved medicines in its portfolio whose revenue is recorded by GSK. In 2024, GSK reported that HIV medicines generated roughly $9.5 billion in sales, a 10.9% increase from the year before. (Vinluan, MedCity News, 1/21)

C-Suite Cheat Sheet: Fraud and Abuse

Download our cheat sheet to learn about fraud and abuse regulations, how to guard against potential violations, and prepare to have conversations with health system executives about compliance programs.


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