Delaware has joined with other states and the federal government to reach an agreement in principle with Philips RS North America LLC, (formerly known as Respironics Inc.), a manufacturer of durable medical equipment (DME) based in Pittsburgh, Pennsylvania, to resolve federal False Claims Act and Delaware False Claims and Reporting Act (DFCRA) allegations that it misled federal health care programs by paying kickbacks to DME suppliers.
Respironics has agreed to pay over $24 million to resolve the allegations that affected Medicare, Medicaid and TRICARE, which is the health care program for active military and their families. Of the total settlement amount, $4,826,250.00 will go to the Medicaid program. Delaware’s Medicaid program will receive $55,688.54.
“Kickbacks result in improper claims being filed with Medicaid and other healthcare benefit programs, and drain precious resources that Medicaid recipients rely on,” Attorney General Jennings said. “We will continue fighting against fraud, waste, and abuse against the government.”
The settlement resolves allegations that from November 1, 2014 through April 30, 2020, that Respironics caused DME suppliers to submit false claims to the Medicaid program for ventilators, oxygen concentrators, CPAP and BiPAP machines, and other respiratory-related medical equipment, when such claims were tainted by Respironics’ providing unlawful remuneration to these DME suppliers in the form of physician prescribing data (known as “HMS” or “...
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