Corporate Compliance

Harborside Healthcare to pay $1.375 million for kickbacks and false claims

Compliance Monitor, October 14, 2009

Harborside Healthcare and HHC Nutrition Services will pay the United States $1.375 million to settle charges that allege the company received kickbacks and assistance under the guise of a sham durable medical equipment (DME) provider, according to a Department of Justice (DOJ) release.
The DOJ alleges McKesson Corp. and its affiliate MediNet Corp. provided kickbacks and assistance for Harborside to purchase its DME from Mckesson.
As part of the settlement, Harborside will forego $498,000 in DME claims that had not yet been billed to Medicare. Mckesson and MediNet are involved in a similar DME scheme that is pending action in Northern Mississippi, reports the DOJ.
Whistleblower, Tommy Jamison filed a lawsuit under the qui tam provision of the False Claims Act. Jamison will receive $275,000 as his share of the government’s recovery.

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