In United States ex rel. Janssen v. Lawrence Memorial Hospital, the Tenth Circuit Court of Appeals affirmed summary judgment for the hospital in a whistleblower retaliation case brought under the False Claims Act. The decision clarified what qualifies as protected activity in compliance-related employment disputes.
Whistleblower Allegations and Hospital Response
Chad Janssen, a former employee of Lawrence Memorial Hospital, alleged that the hospital falsely reported patient admission times to obtain higher Medicare reimbursements. He also claimed that discharge planners were improperly directed to refer patients only to certain providers, potentially violating patient choice requirements.
Janssen reported his concerns internally and later filed a qui tam lawsuit. After disclosing his role in the suit, the hospital did not renew his contract. He filed a retaliation claim under the False Claims Act, arguing that the non-renewal was linked to his reporting of fraud.
Court Examines Protected Activity and Employer Awareness
The Tenth Circuit analyzed whether Janssen's conduct constituted protected activity under the statute. Protected activity must relate to efforts to expose fraud against the government. The court found that Janssen's complaints did not suggest that he was trying to stop or report False Claims Act violations. His internal emails and statements to hospital administrators focused on regulatory and patient care concerns without referencing fraud or false billing.
The court also noted that Janssen's identity as the whistleblower in the qui tam action was not disclosed to the hospital until after his contract expired. As a result, the hospital could not have retaliated based on his participation in the suit.
Summary Judgment Upheld
Because Janssen failed to present evidence showing that he engaged in protected activity or that the hospital knew of his whistleblower role, the court upheld summary judgment. The decision reinforces the requirement that whistleblower retaliation claims under the False Claims Act must be tied to efforts to expose fraud against the government and that employers must be aware of those efforts.
Compliance and Retaliation Policy Assessment
Organizations reviewing compliance protocols or employee reporting systems should understand how whistleblower protections apply in practice. If your team is reassessing internal procedures or addressing retaliation claims, our team at Whitcomb, Selinsky, PC can help evaluate your policies in light of current legal standards.
Joe Whitcomb
