New York has the largest Medicaid program in the country, spending approximately $50 billion per year.  This week, New York enacted its own false claims act, with a “qui tam” whistleblower provision, and appointed James Sheehan, a career prosecutor from the Eastern District of Pennsylvania specializing in complex health care enforcement, as the New York State Medicare Inspector General.  It appears that Governor Elliot Spitzer and Attorney General Andrew Cuomo are following through on campaign promises to strengthen enforcement against Medicaid fraud.  While vigorous enforcement of anti-fraud provisions of course has public benefit, increased investigatory activity can also sweep too broadly.  These developments underscore the importance for health care and life sciences companies doing business in New York to enhance their compliance activities.

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