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Hill-Rom Holdings to Pay $2.1 Million for False Claims Act Violations
COLUMBIA, S.C. – Durable Medical Equipment companies Hill-Rom Holdings, Inc., Hill-Rom Company, Inc., Hill-Rom Services, Inc., and Advanced Respiratory Inc. (collectively, Hillrom) have agreed to pay $2.1 million to resolve allegations that the companies violated the False Claims Act by submitting false claims for payment to the Medicare, TRICARE, Department of Veterans Affairs, and Medicaid programs.
The settlement reached this week resolves allegations that, from January 1, 2011, through December 1, 2019, Hillrom’s Direct to Consumer division sold used Clinitron, TotalCare, and VersaCare beds but billed federal healthcare programs as if they were new beds. Also included in the settlement are allegations that Hillrom sold certain hospital beds and pressure support surfaces to beneficiaries of federal healthcare programs under a miscellaneous code, which sometimes resulted in a higher price paid by the government. The third allegation involves Hillrom’s presenting claims to the federal government and its contractors that mischaracterized travel time as DME repair time in order for it to be reimbursable by federal healthcare programs.
Baxter International purchased Hillrom after the allegations involved in the settlement, and the division involved in the alleged fraud is no longer operational.
“Millions of citizens depend on programs like Medicare and TRICARE for their healthcare, “ said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “Hillrom’s actions damage our federal health programs and impact the families who need them.”
The civil settlement resolves a lawsuit brought under the qui tam or whistleblower provisions of the False Claims Act by Jeri Harris, a former employee of Hillrom. The False Claims Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery.
The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office for the District of South Carolina, the United States Department of Health and Human Services, Office of Inspector General; the United States Defense Criminal Investigative Service with assistance from the Defense Health Agency; and the Department of Veterans Affairs, Office of Inspector General.
Assistant United States Attorney Nancy G. Cote of the District of South Carolina handled the matter.
Key Facts
- State: South Carolina
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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