Corporate Compliance

Medical equipment company owner to spend 10 years in prison

Healthcare Auditing Weekly, October 2, 2007

The owner of a Florida home care company will pay $1.7 million to Medicare and spend 10 years in prison for allegedly turning in more than $3 million in fraudulent claims. Gisela Valladares owned PRN Home Health Care, Inc, a medical equipment company in Miami.

Valladeres allegedly paid kickbacks to Medicare beneficiaries in order to view their Medicare information and access their Medicare cards. She then sent false claims to Medicare for services that were not needed, such as albuterol, nebulizers and oxygen concentrators, according to the government. Valladeres allegedly paid patients $100 a month to accept unneeded medications.

The case is the latest from the Medicare Fraud Strike Force, which was created in March 2007. The U.S. Attorney's Office in the Southern District of Florida and the Fraud Section in Washington D.C. lead the group. They have brought over 80 cases since March, 1 2007.

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