Durable equipment supplier to pay largest civil penalty on record
Compliance Monitor, May 17, 2006
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A Florida durable equipment company accused of paying illegal kickbacks and violating the Stark Law has agreed to a $10 million settlement and will operate under a corporate integrity agreement for the next five years, according to a press release issued by the OIG.
Lincare, one of the largest durable medical equipment suppliers in the country allegedly paid physicians for referrals, according to the OIG. "Lincare gave referring physicians items such as sporting and entertainment tickets, gift certificates, rounds of golf, golf equipment, fishing trips, meals, advertising expenses, office equipment, and medical equipment. The illegal kickbacks also came disguised as payments pursuant to purported consulting agreements, such as Medical Director Agreements.
OIG also alleged that Lincare violated the Self-Referral Law by accepting referrals from parties to the illegal consulting agreements.," states the OIG release.
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