WASHINGTON, D.C. — The U.S. Department of Justice (DOJ) has reached a $22.51 million settlement with a Florida company that manages nearly 700 hospital-based wound care centers through the country, for alleging billing Medicare for medically unnecessary hyperbaric oxygen.
The DOJ reached the settlement with Healogics for alleged violation of the False Claims Act from 2010 through 2015 by filing false claims to Medicare.
“Medicare beneficiaries are entitled to care based on their clinical needs and not the financial goals of health care providers,” Chad Readler, acting assistant attorney general for the department's Civil Division, said in a statement.
“All providers of taxpayer-funded federal health care services, whether contractors or direct billers, will be held accountable when their actions knowingly cause false claims for medically unnecessary services to be submitted."
According to the settlement agreement, Healogics agreed to pay $17.5 million as well as $5.01 million for certain financial contingencies that may appear over the next five years.