FOR IMMEDIATE RELEASE                                         CIV
MONDAY, MARCH 27, 1995                             (202) 616-2771
                                               TDD (202) 514-1888

          FLORIDA HEALTH CARE PROVIDER TO PAY $414,911
                  TO SETTLE FRAUD ALLEGATIONS

     The Department of Justice today announced that it has
entered into a settlement agreement with a Miami, Florida, health
care provider to dispose of allegations that the company falsely
billed the federal Medicare program for supplies for nursing home
patients.  
     Assistant Attorney General Frank W. Hunger, in charge of the
Civil Division, said that under the terms of the settlement, the
United States will recover $414,911 from CHR Associates, Inc.,
doing business as Claridge House, including $173,411 which CHR
has paid already.  Mr. Hunger noted that this civil recovery
shows the government's "continuing efforts to combat health care
fraud on behalf of the United States taxpayers."
     In 1990, CHR entered into a contract with a third party
billing agent, Handled With Care (HWC), whereby HWC would review
CHR's records and bill the government for medical supplies
supposedly used in the treatment of nursing home residents. 
Under the contract, CHR and HWC would share equally the proceeds
of any claims paid through the Medicare Program.  Between
September and December 1990, HWC submitted claims for Medicare
reimbursement on behalf of CHR.  The government determined that
the vast majority of these charges for supplies were not
supported by the patients' medical records, and hence were not
reimbursable under the Medicare program.  The government alleged
that CHR thus improperly augmented its Medicare reimbursement
from the government.
     Under the False Claims Act, the United States is entitled to
recover three times its damages and up to $10,000 for each false
claim submitted to the government.
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95-167