Government

Medical equipment supplier settles charges of physician kickbacks

NEWS IN BRIEF — Posted June 5, 2006

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Lincare Holdings Inc. in May agreed to pay $10 million to the U.S. government to resolve allegations that the company paid kickbacks in violation of physician self-referral statutes, known as the Stark laws. The settlement is the largest civil monetary penalty for the Dept. of Health and Human Services Office of Inspector General.

The OIG alleged that Lincare, from January 1993 through December 2000, compensated doctors in money and gifts in exchange for referring their patients to the company, a durable medical equipment supplier.

The Florida-based company did not admit to any wrongdoing in the agreement. No individual physicians were named. Lincare Chair and CEO John P. Byrnes said the company "fully cooperated" with the government and is "pleased to have resolved these matters."

Inspector General Daniel R. Levinson called the settlement "significant" and said that the "OIG will continue to pursue aggressively those who undermine the integrity of the Medicare program."

Note: This item originally appeared at http://www.ama-assn.org/amednews/2006/06/05/gvbf0605.htm.

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