What type of act is the False Claims Act, which offers incentives for whistleblowing?

Study for the HCCA Certified in Healthcare Compliance (CHC) Exam. Practice with interactive questions and detailed explanations. Get ready to excel in your field!

The False Claims Act is classified as a civil act primarily because it provides a framework for addressing fraudulent claims made to the government, particularly in healthcare and procurement contexts, through civil lawsuits. It allows individuals, often referred to as whistleblowers or relators, to file suit on behalf of the government against entities they believe are submitting false claims.

These whistleblowers can receive a percentage of the recovery from the lawsuit if the government prevails. The act emphasizes civil penalties rather than criminal sanctions, making it an essential tool for combating fraud while also providing protection and financial incentive for individuals to report misconduct. Thus, the civil nature of the False Claims Act is central to its function in deterring fraud and encouraging accountability within programs that rely on government funding.

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