How carefully do you listen to your employees' complaints? False Claims Act lawsuits assault providers on multiple fronts. First, they can carry a big price tag due to the treble damages allowed for in the statute. That can result in whopping settlement amounts such as the nearly $25 million payment for SouthernCare ( Second, a qui tam lawsuit settlement announcement can do major damage to a provider's image. It's much better to issue a release saying you found and self-reported a problem instead of that you had to settle a whistleblower suit, notes attorney Local news outlets often comb through every unsubstantiated allegation in the qui tam relators' suits, tarnishing your standing with referrals. To head off costly and embarrassing whistleblower suits, take these steps: 1. Draw up and institute a sound compliance plan. Resources: 2. Encourage a culture of compliance. 3. Focus on compliance hot spots. 4. Review eligibility criteria. Now is a good time to review your own eligibility criteria and make sure you are adhering to Medicare guidelines and your own compliance plan. Everyone admits that predicting life expectancy is an inexact science, Markette notes. But if your patients' average length of stay has gradually trended up past the six-month point, it's time to take a look at your admission practices. "Be vigilant about who you are admitting," he advises. Realize the difference between a patient with an incurable disease and one who is eligible for hospice with a six-month terminal prognosis. 5. Be receptive to employee complaints. Hospices need to have "openness about concerns such as those brought forward by the qui tam relators in this case," Hogue maintains. "Many individuals in the hospice industry want to do the right thing. The right thing is clearly to bring any concerns to management first before staff members go to outside third parties." However, if staff complain and management does not appropriately address their concerns, employees have no choice but to take action outside of the organization. "Management must work hard to make certain that staff members don't reach a conclusion that the only way to address the problem is to go outside the company," Hogue cautions. 6. Police yourself.