DME company to pay $17M to settle fraud allegations
February 18, 2002 less than 1 minute read
DME company to pay $17M to settle fraud allegations
The U.S. Department of Justice announced Feb. 14 that Orlando, FL-based Rotech Medical Corp. will pay $17 million to resolve allegations that the company fraudulently overbilled state and federal health care programs for respiratory equipment, supplies, and services.
The settlement resolves the government’s contention that Rotech submitted false claims to both federal and state health care programs in violation of the False Claims Act, including the submission of falsified documents used in billing the government for durable medical equipment such as oxygen cylinders, oxygen concentrators, and nebulizers, as well as double billing.
The allegations also cited claims for undelivered items, medically unnecessary drugs and equipment, deceased patients, and claims that were inflated based on a relative lack of competition.
The settlement agreement was developed along with a bankruptcy plan that includes a corporate integrity agreement.
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