After settling allegations of violating the False Claims Act, Harborside Healthcare and HHC Nutrition Services will pay the U.S. government $1.375 million after allegedly receiving kickbacks and assistance under the guise of a fake durable medical equipment (DME) provider company.

The settlement resolves allegations that the company received kickbacks from McKesson Corp and its affiliate, MediNet Corp to purchase its DME – violating the Anti-Kickback Statute and the False Claims Act.

The government’s investigations were initiated as the result of a qui tam lawsuit filed by a whistleblower. The whistleblower will receive $275,000 for their role in the investigation. The Justice Department’s Civil Division, the Office of Inspector General at the U.S. Department of Health and Human Services, and the U.S Attorney’s Office for the Northern District of Mississippi were responsible for the settlement as a result of the ongoing investigation.

Click here to read the full article “Harborside Healthcare to Pay U.S. $1.375 Million to Resolve Allegations of Kickbacks and Sham Durable Medical Services”