DME company to pay $25.5M to settle fraud allegations

A durable medical equipment company with more than 700 locations nationwide agreed to pay $25.5 million to settle allegations it continued to bill federal healthcare programs for the rental of respiratory equipment when patients no longer needed or used the devices. 

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The settlement also resolves allegations that Lincare violated the Anti-Kickback Statute by waiving coinsurance payments to induce certain Medicare and Tricare beneficiaries to rent the  noninvasive ventilators, according to a Feb. 15 news release. 

As part of the settlement, Lincare admitted it received reimbursement from federal healthcare programs for rental claims that did not comply with all of those programs’ billing rules and guidance, according to the release. The company also admitted that in some instances, it continued to seek monthly payment when it was aware that the patients were no longer using the devices. 

The U.S. will receive more than $24.2 million of the settlement and the rest will be paid to various states, according to the release. 

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