Problem
I. If you were representing Stepford Hospital, what would you argue to the government's investigators in defense of the hospital in accordance to the federal False Claims Act?
II. In addition to the facts provided, assume that Dr. Ego also uses a high percentage of other PGMD devices in his cardiology practice and 3 years ago entered into a consultant arrangement with PGMD under which he is paid $50,000 a year for participating in periodic product development seminars sponsored by PGMD. Does this raise any additional concerns?