Medical Equipment Provider to Pay $600,000 for False Claims Act Violations

The U.S. Attorney for the Southern District of Indiana announced on October 19, 2011, that Premier Home Care, a durable medical equipment provider in Southern Indiana, had agreed to pay $600,000 to the United States and to the State of Indiana for violations of the False Claims Act.  This qui tam suit was filed in 2008 by a former Premier employee who alleged that the company violated the False Claims Act by falsely certifying its compliance with state licensing requirements when it used unlicensed personnel to set up respiratory ventilation machines for patients.

Premier will pay $578,820 to the United States and $21,180 to the State of Indiana, both of which are more than twice the estimated damages resulting from the False Claims Act violations.  The announcement also noted that the whistleblower is entitled to between 15 and 25% of the government’s recovery under the False Claims Act.

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