A settlement has been reached to resolve False Claims Act allegations against Rotech Healthcare Inc.
The allegations arose from a lawsuit that claimed Rotech Healthcare Inc knowingly submitted false claims for portable oxygen contents to Medicare.
According to the government, Rotech admitted to billing portable oxygen contents to Medicare for beneficiaries who did not use or require them. Furthermore, the company admitted to billing Medicare regardless of whether such contents were delivered.
“Many people believe that healthcare fraud is a victimless crime; I assure you it is not,” said United States Attorney Joseph D. Brown of the Eastern District of Texas. “Medicare is funded largely by you and me, the American taxpayers, and fraud contributes to runaway health care costs. I commend the whistleblower who had the courage to come forward and who worked with investigators to get to the bottom of this case. Because of her, we were able to recoup millions of dollars improperly paid to Rotech.”
Medicare covers the cost of renting certain portable and stationary oxygen equipment as well as the oxygen that is used with that equipment.
Reportedly, between January 2009 and March 2012, Rotech automatically billed Medicare for portable oxygen contents for all Medicare beneficiaries after the 36-month rental period, without verifying that the beneficiaries used or needed portable oxygen, and without obtaining the requisite proof of delivery. Rotech continued this practice despite knowing that it resulted in the submission of claims for portable oxygen contents that were ineligible for reimbursement.
The whistleblower, Janet Hale, a former employee in Rotech’s billing department, share of the settlement will be approximately $1.65 million.
