The case, filed under the False Claims Act by former employees, was dismissed with prejudice by US District Judge Douglas Woodcock yesterday, according to court documents.
In the case, former employees claimed that the company has billed government health programs, including Medicare, since 2003 for oxygen equipment and tanks even when the customers did not use or require them. The ex-employees also alleged that the company fabricated customer oxygen orders and improperly waived customer co-payments and deductibles.
The suit alleged the company also paid kickbacks to physicians and their families for patient referrals, supplying them with oxygen and supplies for free.
Lincare said that it had followed set regulations and the lawsuit was challenging “garden variety” billing errors.
“The matter was resolved to the satisfaction of all involved, with no admission of liability by any party,” Lincare said in a statement.
The case originally began as 2 separate suits filed in 2009 and 2010 by ex-employees in New York state and Massachusetts.
Under the settlement deal, the US government will receive $9 million, with $11 million going to the former employees.
Material from Reuters was used in this report