DOJ Issues First Healthcare Declination Under New Corporate Enforcement Policy

The Department of Justice has declined to prosecute Campus Eye Management Holdings under its new Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP), marking the first such declination for a healthcare company. The declination was granted after the company voluntarily disclosed misconduct, fully cooperated with investigators, and took remedial action, including agreeing to pay $1 million to affected patients. This resolution is a critical data point for corporate counsel and investors, as it demonstrates the tangible benefits of self-reporting under the new policy. However, it also powerfully illustrates the DOJ's focus on individual accountability. Concurrent with the corporate declination, the department unsealed a seven-count indictment against Campus Eye's founder and former CEO for allegedly orchestrating the $3.4 million Medicare billing fraud and kickback scheme. The case serves as a clear warning and a roadmap, signaling that while a company can earn leniency through cooperation, individuals responsible for the misconduct will be aggressively pursued. It highlights the importance of robust compliance programs and thorough due diligence in M&A, particularly for businesses reliant on government reimbursement.