Lincare Settles With HHS OIG Over Doctor Kickback Allegations

Florida-based Lincare Holdings, which makes home oxygen and other respiratory equipment, on Monday reached a $10 million settlement with the federal government over allegations that the company paid kickbacks to doctors, the New York Times reports. The HHS Office of Inspector General alleged that between 1993 and 2000, Lincare illegally paid doctors to refer patients to the company. Doctors allegedly received sports tickets, gift certificates, fishing trips and golf outings, as well as office and medical equipment. The HHS OIG also accused Lincare of giving doctors kickbacks through payments hidden as consulting fees. Without admitting any wrongdoing, Lincare agreed to pay $10 million to settle the allegations -- to date, the largest administrative recovery by the HHS OIG, according to the Times. Lincare said it already has set aside reserves for most of the settlement and related expenses. HHS Inspector General Daniel Levinson said, "This significant settlement is an important example of OIG's continuing effort to eliminate illegal kickback practices and violations of the self-referral law." John Byrnes, Lincare chair and CEO, said, "We are pleased to have resolved these matters with the government. Lincare fully cooperated with the government during the course of their inquiries. Our board of directors believes that it was in the best interests of the company to put these matters behind us." Lincare also said it already has resolved other investigations by the HHS OIG and the Department of Justice related to inappropriate Medicare payments and other issues. A DOJ spokesperson said no settlement has been reached (Abelson, New York Times, 5/16).