Harborside Healthcare and HHC Nutrition Services have agreed to pay $1.375 million and forego another $498,000 in collections to resolve False Claims Act allegations that “the company received kickbacks and assistance under the guise of a sham durable medical equipment (DME) provider,” the announced DoJ. The government alleged that McKesson Corp. and affiliate MediNet Corp provided “kickbacks and assistance and, in return, Harborside purchased its DME, such as non-enteral supplies, from McKesson.” Qui Tam whistleblower, Tommy Jamison filed the suit and will recieve $275,000 of the recovery. A similar suit remains pending in Mississippi.

To report DME fraud, contact Frohsin & Barger.