United States ex rel. Polansky v. Executive Health Resources, Inc.

Relator Jesse Polansky filed a qui tam suit under the False Claims Act alleging that Executive Health Resources, Inc. caused hospitals to bill Medicare for higher-paying inpatient stays instead of outpatient observation services. The United States initially declined to intervene, then later moved to dismiss the case over Polansky's objection. The district court granted dismissal, but the Third Circuit reversed. The Supreme Court held that the government may dismiss a qui tam action even when it has not intervened, because the United States remains the real party in interest. The case was remanded for application of the proper voluntary dismissal standard under Federal Rule of Civil Procedure 41(a)(2).

The Supreme Court reversed the Third Circuit, holding that the government may seek dismissal under Rule 41(a)(2), and remanded for the district court to apply that standard.

Whether the government may dismiss a qui tam False Claims Act suit over the relator's objection after initially declining to intervene, and what standard governs such a dismissal.

The ruling strengthened the government's control over False Claims Act qui tam litigation, limiting whistleblower autonomy when the government chooses not to intervene. It may deter some relators from pursuing cases the government views as weak or burdensome, while clarifying that the United States remains the primary party in such suits.