February 14, 2008 — Rotech Medical Corporation

Rotech Medical Corporation Centers has agreed to pay $17 Million to resolve allegations that the company overbilled government health care programs for respiratory equipment supplies and services.

Orlando Florida based Rotech is one of the nation’s largest suppliers for respiratory equipment, supplies and services, operating through subsidiary companies in 40 states, including Community Home Oxygen (CHO) of Montana.

The allegations of the case were that Rotech and CHO: (a) submitted forged and falsified documents used in billing the government for durable medical equipment such as oxygen cylinders, oxygen concentrators, and nebulizers, (b) engaged in double billing, (c) filed claims for undelivered items, (d) filed claims for medically unnecessary drugs and equipment, and (e) filed claims which were arbitrarily inflated based upon a relative lack of competition.

“Today’s settlement underscores our resolve to pursue vigorously allegations of financial fraud against federal health care programs.” Said Robert McCallum Jr., Assistant Attorney General for the Civil Division of the Department of Justice.

See U.S. Dept of Justice Press Release 2/14/08

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