Source: https://m.openjurist.org/957/f2d/605
Timestamp: 2020-06-06 05:50:04
Document Index: 521304584

Matched Legal Cases: ['§ 3729', '§ 3730', '§ 3729', '§ 3152', '§ 1395', '§ 1395']

957 F2d 605 United States Glass v. Medtronic Inc | OpenJurist
957 F. 2d 605 - United States Glass v. Medtronic Inc
957 F2d 605 United States Glass v. Medtronic Inc
957 F.2d 605
Medicare & Medicaid Guide P 40,093
UNITED STATES of America, ex rel. Charles H. GLASS, Appellant,
MEDTRONIC, INC., Appellee.
Charles H. Glass appeals from a final order entered in the United States District Court1 for the District of Minnesota granting partial summary judgment in favor of Medtronic, Inc. and dismissing his claims under the False Claims Act. 31 U.S.C.A. § 3729 et seq. (West 1983 & Supp.1991). United States ex rel. Glass v. Medtronic, Inc., No. 3-88-547, 1990 WL 357536 (D.Minn. Aug. 28, 1990). For reversal, Glass argues that the district court erred in finding there was nothing false or fraudulent about Medtronic's advice to him to submit his medical bills to Medicare for payment. For the reasons discussed below, we affirm the order of the district court.
Glass filed his initial complaint in August 1988 and the government filed a notice declining to prosecute in December 1988. In May 1989 Medtronic moved to dismiss on the ground that Glass was not an original source of the information on which the suit was based and thus the suit was jurisdictionally barred under 31 U.S.C.A. § 3730(e)(4)(A) (West Supp.1991). The district court denied this motion. On June 25, 1990, Medtronic filed a motion for partial summary judgment. This motion was granted and Glass now appeals.2
We review a grant of summary judgment de novo. The question before the district court, and this court on appeal, is whether the record, when viewed in light most favorable to the non-moving party, shows that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c); see, e.g., Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 2552-53, 91 L.Ed.2d 265 (1986); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249-50, 106 S.Ct. 2505, 2510-11, 91 L.Ed.2d 202 (1986).
31 U.S.C.A. § 3729(a) (West Supp.1991). In applying this statute, the district court found that two elements were necessary for Glass to prove a cause of action: (1) a claim for payment from the government was made and (2) the claim was false or fraudulent. United States ex rel. Glass v. Medtronic, Inc., No. 3-88-547, slip op. at 5, citing Boisjoly v. Morton Thiokol, Inc., 706 F.Supp. 795, 808 (D.Utah 1988).
The Medicare Intermediary Manual explicitly states that Medicare covers the cost of medical services associated with replacing defective medical devices even when the manufacturer of the device is liable under warranty for such devices. Health Care Financing Admin., U.S. Dep't of Health & Human Services, Medicare Intermediary Manual § 3152(D) (Apr.1988). Medicare, after it pays, is subrogated to the rights of the patient and can seek reimbursement from the manufacturer. 42 U.S.C.A. § 1395y(b)(2)(B)(iii) (West 1992). The payment of Medicare benefits is only improper when a prior determination is made that payment from another source is expected promptly. Id. § 1395y(b)(2)(A). Here, no prior determination had been made that payment could be expected promptly under Medtronic's liability insurance policy. Medicare, following its payment to Glass, could seek reimbursement from Medtronic. Therefore, it was proper for Glass to submit his claims to Medicare, and Medtronic's advice to Glass to do so was not false or fraudulent.
Following the district court's grant of partial summary judgment, Charles Glass's various state law claims which were not dismissed pursuant to the partial summary judgment were, according to a joint stipulation, dismissed without prejudice for lack of subject matter jurisdiction. United States ex rel. Glass v. Medtronic, Inc., No. 3-88-547 (D.Minn. Dec. 3, 1990)