What potential liabilities does a Brightstar Care franchisee face for violating the False Claims Act?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent your franchise accepts reimbursement directly from the VA, it will be required to satisfy the applicable regulatory requirements the VA imposes on its vendors, including but not limited to the Federal Acquisition Regulations and various VA contract requirements. The False Claims Act imposes civil liability on persons or corporations which submit or cause to be submitted false or fraudulent claims for payment to the government. A violation of the False Claims Act may result in liability for fines, treble damages, attorneys' fees, and exclusion from federal health care programs.
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee may face significant liabilities for violating the False Claims Act if they submit false or fraudulent claims for payment to the government, particularly if they accept reimbursement directly from the VA.
The potential liabilities include fines, treble damages (three times the actual damages), attorneys' fees, and exclusion from federal health care programs. This means that if a Brightstar Care franchisee knowingly submits a false claim for, say, $1,000, they could be liable for $3,000 in damages, plus additional fines and legal costs, and potentially be barred from participating in federal healthcare programs in the future.
It is important to note that even though a Brightstar Care agency is prohibited from participating in Medicare, the franchisee may still provide staff to other facilities that do participate in Medicare and/or Medicaid programs. Therefore, it is the franchisee's responsibility to ensure that their employees are screened for possible excluded status in these or other payment programs to avoid potential violations and liabilities. Franchisees should consult with competent local counsel to ensure compliance with all applicable laws and regulations.