Transworld Healthcare pays $10M settlement
October 1, 2000 less than 1 minute read
NEWS BRIEF
Transworld Healthcare pays $10M settlement
Medical distributor Transworld Healthcare paid the U.S. government $10 million to settle kickback charges in which the company was accused of paying durable medical equipment (DME) suppliers and physicians for patient referrals, as well as claiming excessive Medicare reimbursements. Transworld Healthcare Inc., based in New York City, distributes a variety of unit-dose medications through subsidiary companies. The company was accused of systematic defrauding of Medicare and other government programs by claiming excessive reimbursements. The qui tam suit was filed under the False Claims Act by whistle-blower Christopher Piacentile, a New Jersey businessman who was awarded $1,350,000 for his efforts.
The suit claimed that Transworld-related entities, including RespiFlow, a Jacksonville, FL-based subsidiary, paid kickbacks of up to $750 to DME suppliers and physicians in exchange for patient referrals, and then billed them as marketing fees.
The suit also alleged that Transworld routinely waived coinsurance payments for Medicare beneficiaries. Most of the medicines involved were pre-mixed, unit-dose respiratory medications, such as albuterol, but kickbacks also were allegedly used to promote diabetic, urological, urinary, tracheal, ostomy, enteral, and surgical supplies and products.
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