Use this button to switch between dark and light mode.

Experience a New Era in Legal Research with Free Access to Lexis+

United States ex rel. Bledsoe v. Cmty. Health Sys.

United States ex rel. Bledsoe v. Cmty. Health Sys.

United States Court of Appeals for the Sixth Circuit

April 10, 2007, Argued; September 6, 2007, Decided; September 6, 2007, Filed

File Name: 07a0364p.06

No. 06-5096

Opinion

 [***2]  [*496] 

CLAY, Circuit Judge. In his second trip before this Court, Relator Sean Bledsoe appeals the district court's grant of Defendants Community Health Systems, Inc.'s ("CHS") and Sparta Hospital Corp.'s, d/b/a White County Community Hospital ("White County") motions to dismiss his second amended complaint.  [**2] Relator also appeals the district court's denial of his motion to recognize a settlement agreement (the "Settlement Agreement") between CHS and the government. Relator brought this action under the False Claims Act, 31 U.S.C. § 3729 et seq., alleging that Defendants engaged in various types of fraud that  [*497]  increased the reimbursements that they received from Medicare and Medicaid. In the separate Settlement Agreement, CHS paid $ 30,494,749.51 to the United States government in settlement of claims that arguably overlap with Relator's complaint; Relator contends that he is entitled to a relator's share of the proceeds.

On appeal, Relator argues (1) that the district court erred in concluding that portions of his second amended complaint were not pled with particularity as required by Federal Rule of Civil Procedure 9(b); (2) that the district court erred in dismissing portions of his second amended complaint as barred by the statute of limitations; (3) that the district court erred in dismissing his entire second amended complaint with prejudice, and without explanation, after previously upholding portions of the complaint; and (4) that the district court erred in denying his motion to  [**3] recognize the settlement. For the reasons that follow, we AFFIRM in part, REVERSE in part, and REMAND for proceedings consistent with this opinion.

BACKGROUND

Read The Full CaseNot a Lexis Advance subscriber? Try it out for free.

Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.

501 F.3d 493 *; 2007 U.S. App. LEXIS 21260 **; 2007 FED App. 0364P (6th Cir.) ***

UNITED STATES OF AMERICA ex rel., Plaintiff-Appellee, SEAN BLEDSOE, Plaintiff/Relator-Appellant, v. COMMUNITY HEALTH SYSTEMS, INC., SPARTA HOSPITAL CORP., d/b/a WHITE COUNTY COMMUNITY HOSPITAL, Defendants-Appellees.

Subsequent History: Rehearing, en banc, denied by United States ex rel. Bledsoe v. Cmty. Health Sys., 2008 U.S. App. LEXIS 1806 (6th Cir., Jan. 17, 2008)

Prior History:  [**1] Appeal from the United States District Court for the Middle District of Tennessee at Cookeville. No. 00-00083--William J. Haynes, District Judge.

United States ex rel. Bledsoe v. Cmty. Health Sys., 2005 U.S. Dist. LEXIS 36446 (M.D. Tenn., Dec. 12, 2005)

CORE TERMS

allegations, billed, district court, particularity, fraudulent, false claim, settlement agreement, upcoding, fraudulent scheme, qui tam, notice, pled, miscoding, violations, codes, disclosure statement, original complaint, equitable tolling, relates back, employees, patient, Defendants', statute of limitations, settlement, unbundling, specific allegation, amended complaint, circumstances, proceeds, sticks

Civil Procedure, Pleadings, Heightened Pleading Requirements, General Overview, Responses, Defenses, Demurrers & Objections, Motions to Dismiss, Governments, Federal Government, Claims By & Against, Labor & Employment Law, Employer Liability, False Claims Act, Complaints, Requirements for Complaint, Fraud Claims, Burdens of Proof, Scope & Definitions, Judgments, Preclusion of Judgments, Law of the Case, Appeals, Standards of Review, De Novo Review, Amendment of Pleadings, Relation Back, Legislation, Statute of Limitations, Tolling, Remedies, Qui Tam Actions