Health care fraud remains a key target of the federal False Claims Act, according to the Justice Dept.'s annual report on recoveries made under the statute. The study, along with recent legislative developments, indicate that the government is stepping up its enforcement activities in this area, experts said.

Health care cases made up the lion's share of false claims settlements and judgments in the fiscal year ending Sept. 30, bringing in $1.6 billion, or two-thirds of the total $2.4 billion recouped. The statute gives federal officials authority to prosecute fraudulent billing of any government program.

This year's haul from the health care sector alone is just above that for total false claims recoveries in 2008, when the government took in $1.54 billion, and 30% higher than the $1.12 billion that came from health care fraud cases last year.

The government registered its biggest returns from the pharmaceutical and medical device industries, which accounted for $867 million in settlements over alleged illegal off-label marketing. A record settlement involving Medicaid false claims recovered $540 million from the state and city of New York.

The numbers still represent only a fraction of the scope of health care fraud activity, said George B. Breen, an attorney with Epstein Becker & Green PC in Washington, D.C. For example, the figures do not include criminal false claims cases or the portion of recoveries returned to the states.

"The numbers are actually much larger if you take into consideration other sources of potential recovery. But the government is following the money, which shows that pursuing False Claims Act cases against health care providers is a substantial revenue generator," said Breen, who defends clients accused of health care fraud. "When you look at what additional steps the government has taken, it suggests [these cases] will only continue to grow in the coming years."

The Justice Dept.'s Nov. 19 report said fighting health care fraud is a "top priority" and one that has been facilitated, in part, by a newly formed joint task force with the Dept. of Health & Human Services -- known as the Health Care Fraud Prevention and Enforcement Action Team, or HEAT.

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