Florida-based Rotech pays nearly $10 million to settle whistleblower’s allegations of fraud

by Ben Vernia | April 17th, 2018

On April 12, the Department of Justice announced that Rotech Healthcare, Inc., has agreed to pay $9.68 million to resolve a former employee’s civil allegations that the company filed false claims for reimbursement of medically unnecessary or unused oxygen. According to DOJ’s press release:

The Justice Department announced today that Rotech Healthcare Inc., a Florida-based respiratory equipment supplier, has agreed to pay $9.68 million for knowingly submitting false claims for portable oxygen contents to Medicare.  As part of the settlement, Rotech admitted that it knowingly billed portable oxygen contents to Medicare for beneficiaries who did not use or require them.  The Company further admitted to billing Medicare regardless of whether such contents were delivered.

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Medicare covers rentals of portable and stationary oxygen equipment for up to 36 months and allows suppliers to bill monthly for oxygen to be used with that equipment for up to 24 additional months after the rental period.  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.

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The government announced that the whistleblower will receive $1,645,600 (a 17% relator’s share).



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