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IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF INDIANA FORT WAYNE DIVISION UNITED STATES ex rel., and NANCY REUILLE, Relator, v. COMMUNITY HEALTH SYSTEMS PROFESSIONAL SERVICES, CORPORATION, and LUTHERAN MUSCULOSSKELETAL CENTER, LLC, d/b/a LUTHERAN HOSPITAL, Defendants. ) ) ) ) ) ) ) ) ) ) ) ) ) )

Case No. 1:09-cv-00007

THE UNITED STATES' APPLICATION TO TRANSFER OR IN THE ALTERNATIVE FOR AN EXTENSION OF THE STAY The United States of America (the "United States"), by undersigned counsel, respectfully petitions this Court to transfer this case to the United States District Court for the Middle District of Tennessee pursuant to 28 U.S.C. 1404(a). In the alternative, the United States requests that this matter be stayed, and the time to serve the Complaint be extended, for an additional 180 days pursuant to 31 U.S.C. 3729(a). In support of this application, the United States avers as follows: I. BACKGROUND 1. This case was originally filed on January 7, 2009 by Relator Nancy Reuille against Community Health Systems Professional Services Corporation ("CHSPSC"), and Lutheran Musculosskeletal Center, LLC, d/b/a Lutheran Hospital, alleging claims under the federal False Claims Act (the "FCA"), 31 U.S.C. section 3729, et seq.

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2. In accordance with Section 3730(b)(2) of the federal FCA, this matter was filed under seal to allow the United States to conduct an investigation into the allegations. On December 27, 2010, the United States served a notice of declination in the case, and this Court issued an order stating, inter alia, that "the complaint be unsealed and served upon the defendant by the relator" and "the seal be lifted as to all other matters occurring in this action after the date of this Order." (D.E. #18). 3. After the filing of the notice of declination, the United States learned of significant overlap between certain allegations made in the instant matter and those under investigation elsewhere in the United States. Specifically, the United States is investigating allegations of improper billing for inpatient care at hospitals associated with Community Health Systems, Inc. (CHS), the parent company of Defendants in this matter, asserted in other jurisdictions. The United States then consolidated its investigations of CHS and related entities; the Civil Division of the Department of Justice, multiple United States Attorneys offices, and the Office of Inspector General (OIG) for the Department of Health and Human Services (HHS) began to coordinate their investigation of the overlapping allegations. The United States also secured the services of the Office of Audit Services for the Office of Investigations for HHS (OAS) to assist with a national audit. 4. As a result of the ongoing investigation of CHS and related entities, the United States began to reconsider its decision about intervening in this lawsuit. In

accordance with Section 3730(c)(3), the Court may permit the United States to intervene at a later date upon a showing of good cause. 5. In order to allow the national investigation to continue and for the United States to make a more informed intervention decision in this case, on April 22, 2011, Relator -2-

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and the United States filed a Joint Motion to Stay the Case and Extend the Time to Serve Defendants. (D.E. #30). On April 25, 2011, this Court granted the motion to stay this matter until October 19, 2011, and ordered that service of process be accomplished on or before December 19, 2011. (D.E. #33). 6. Since this Court issued the stay, members of the United States investigative team have met, in person and by telephone, with attorneys representing CHS on multiple occasions. Among the issues discussed during these meetings are the scope of the investigation and potential design of a national audit. 7. Relator Nancy Reuille, through counsel Matthew K. Organ of the Goldberg Kohn LTD. Law firm, has informed the United States that she does not oppose this application for transfer to the Middle District of Tennessee or, in the alternative, for an extension of the stay. 8. CHSPSC and CHS, through counsel Michael Waldman of the Robbins, Russell, Englert, Orseck, Untereiner & Stauber LLP law firm, have informed the United States that they do not agree to a transfer but do consent to a stay of ninety (90) days. II. DISCUSSION 9. The United States seeks transfer to United States District Court for the

Middle District of Tennessee. Pursuant to 28 U.S.C. 1404(a), [f]or the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought. 28 U.S.C. 1404(a). 10. As an initial matter, this lawsuit may have been brought in the Middle District of Tennessee. The Middle District of Tennessee has subject matter jurisdiction pursuant to 28 U.S.C. 1331 and 1345 and may exercise personal jurisdiction over -3-

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defendants pursuant to 31 U.S.C. 3732(a). Venue is proper in the Middle District of Tennessee under 31 U.S.C. 3732(a) and 28 U.S.C. 1391 (b) and (c) because CHS is headquartered in Franklin, Tennessee,1 and because some of the acts alleged in the instant complaint, such as creation of the Bluebook and CHS corporate policy with respect to its use and any changes in practices after the CHS acquisition of Lutheran Hospital, are alleged to have occurred in the Middle District of Tennessee. 11. Courts have held that section 1404(a) is intended to place discretion in the district court to adjudicate motions for transfer according to [a] . . . case-by-case consideration of convenience and fairness. Research Automation, Inc., v. Schrader-

Bridgeport Intl, Inc., 626 F.3d 97, 977 (7th Cir. 2010) (quoting Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 29 (1988)). Where a district court gives thoughtful consideration to the factors applicable to a transfer analysis under 1404(a), we give its decision substantial deference. Id. at 976. 12. The relevant factors considered for a 1404(a) transfer include, under the convenience prong: the availability of and access to witnesses, and each partys access to and distance from resources in each forum; the location of material events; and the relative ease of access to sources of proof. Id. at 978. The interest of justice prong relates to the efficient administration of the court system and its factors include: docket congestion and likely speed to trial; each courts relative familiarity with the relevant law; the respective desirability of resolving controversies in each locale; and the relationship of each community to the controversy. Id. The interest of justice may be determinative, warranting transfer or its

Community Health Systems Company Overview available at http://www.chs.net/company_overview/history.html (Last visited October 12, 2011).

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denial even where the convenience of the parties and witnesses points toward the opposite result.

Id. Finally, courts may also apply a general presumption in favor of giving a plaintiff her choice of court. See, e.g., Abad v. Bayer Corp., 563 F.3d 663, 667-68 (7th Cir. 2009) (citing Gulf Oil Corp. v. Gilbert, 330 U.S. 501, 508-06 (1947)). 13. In this case, the sum of the interests among the parties weighs heavily toward adjudication in the Middle District of Tennessee. Because CHS is headquartered in the Middle District of Tennessee, many of the relevant CHS witnesses, documents and other evidence are expected to be in that district. For the same reason, alleged material events relating to CHS policy, practice and procedure would likely have occurred in the Middle District of Tennessee. Therefore, the United States expects that the Middle District of Tennessee is more convenient to the parties than the Northern District of Indiana. The Middle District of Tennessee is a much more convenient venue for the United States, which is the real plaintiff in interest in a qui tam complaint; Relator Nancy Reuille consents to transfer to the Middle District of Tennessee. Finally, as explained above, this matter has become part of a nationwide investigation regarding the billing of inpatient care in CHS hospitals. In the interests of justice and the efficient administration of justice, transfer of venue to the Middle District of Tennessee pursuant to 1404(a) is also appropriate given the United States ongoing investigation of the allegations in this case and other similar allegations. 14. In sum, the weight of these factors favor transfer of this civil action to the United States District Court for the Middle District of Tennessee pursuant to 28 U.S.C. 1404(a).

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WHEREFORE, the United States of America requests that this Court enter an order transferring this litigation to the United States District Court for the Middle District of Tennessee. In the alternative, the United States requests that this matter be stayed, and the time to serve the Complaint be extended, for an additional 180 days pursuant to 31 U.S.C. 3729(a). Dated: October 19, 2011 Respectfully submitted, DAVID CAPP UNITED STATES ATTORNEY /s/ Joseph S. Reid Joseph S. Reid Assistant United States Attorney United States Attorney's Office 5400 Federal Plaza Suite 1500 Hammond, Indiana 46320 (219) 937-5500 Phone (219) 852-2770 Fax # Email: joseph.reid@usdoj.gov Joyce R. Branda Daniel R. Anderson Elizabeth A. Strawn Attorneys Civil Division United States Department of Justice PO Box 261, PHB 9138 Washington, DC 20044 (202) 616-7986 Phone (202) 305-4117 Fax Email: elizabeth.strawn@usdoj.gov

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CERTIFICATE OF SERVICE
I hereby certify that on October 19, 2011, Joseph S. Reid, electronically filed the foregoing THE UNITED STATES' APPLICATION TO TRANSFER OR IN THE

ALTERNATIVE FOR AN EXTENSION OF THE STAY with the Clerk of the Court using
the CM/ECF system which sent notification of such filing to the following: David J. Chizewer, Jan Soifer, Loren K. Allison, Matthew K. Organ and Patrick J. OConnell.

/s/ Amber Mills Legal Assistant OFFICE OF: United States Attorney 5400 Federal Plaza, Suite 1500 Hammond, Indiana 46320 Tel: (219) 937-5500 Fax: (219) 937-5544

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