Medical Equipment Manufacturer Pays Out $24 Million to States and Federal Government to Resolve Health Care Fraud Allegations

  • A bipartisan coalition of eight AGs and the federal government settled with Phillips RS North America LLC (formerly known as Respironics Inc.), a medical equipment manufacturer, to resolve allegations that the company violated the federal False Claims Act and state false claims statutes by paying kickbacks to its suppliers to submit false claims to Medicaid.
  • According to Illinois AG Kwame Raoul, the company allegedly provided valuable physician prescribing data to suppliers, who in turn submitted false Medicaid claims for medical equipment including ventilators, oxygen concentrators, and other respiratory-related equipment.
  • Under the terms of the settlement, the company will pay over $24 million to the states and the federal government.